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Problem 6 Consider a world ofjust two individuals, Esther and Abhijit, who each need both of two goods, piantains and rice, to survive. They differ

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Problem 6 Consider a world ofjust two individuals, Esther and Abhijit, who each need both of two goods, piantains and rice, to survive. They differ in how productive they are in growing plantains and rice, as shown in the diagram. _ Production if 100% of time is spent on one good 800 plantains or 75 bushels of rice Abhijit 500 plantains or 65 bushels of rice a. Based on this information, which of the following statements is correct? i. Abhijit has an absolute advantage in both crops. ii. Esther has a comparative advantage in both craps. iii. Esther has a comparative disadvantage in producing rice. iv. Abhijit has a comparative advantage in producing plantains. b. Based on this information, which of the following statements is correct? i. While Esther could benefit from specialization, there's no instance in which Abhijit would benefit from specialization. ii. While Abhijit could benefit from specialization, there's no instance in which Esther would benefit from specialization. iii. They both can benefit from specialization. iv. Neither can benefit from specialization

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