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S. The Ricardian Model (chapter 3) This exercise demonstrates that productivity is a key driver in the Ricardian model. Suppose there are two small family

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S. The Ricardian Model (chapter 3) This exercise demonstrates that productivity is a key driver in the Ricardian model. Suppose there are two small family operated rms, called \"M\" and \"J\". Both rms can produce the same two products: Hamburgers and Tshirts. We look at how many Hamburgers each rm can produce in a day, when specializing in Hamburger production, and how many T-shirts they can produce in a day when specializing in Tshirt production. \"M\" produces 10 hamburgers or 3 T-shirts in a day. \"J" produces 'r' hamburgers or 4 T -shirts in a day. (:1) Putting T-shirts on the horizontal axis and hamburgers on the vertical axis construct two graphs, one for \"M\" and one for \"J \" that show their respective production possibilities frontiers. (b) Which rm has an absolute advantage in producing hamburgers and/or T-shirts respectively? Justify your answer. (c) Which of the firms has a higher opportunity cost of making T-shirts. Justify your answer. (d) Which of the rms has a comparative advantage in producing hamburgers? Justify your

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