There were 15 questions but I only need answers for the last five. But I will post all the questions for you to understand the context.

Logan and Hayden each have 50 hours to devote to market production (M) and home production (H). For simplicity we will talk as if both M and H can be thought of as standard units of M and H. In an hour, Logan can produce 80M or of 20H. In an hour, Hayden can produce 100M or 40H.

1. Who has the absolute advantage in producing M? How did you reach this conclusion?

2. Who has the absolute advantage in producing H? How did you reach this conclusion?

3. Who has the comparative advantage in producing M? How did you reach this conclusion?

4. Who has the comparative advantage in producing H? How did you reach this conclusion?

5. Draw Logan's PPC (put M on the vertical axis). DRAW TWO SEPARATE GRAPHS. ONE WITH

6. Draw Hayden's PPC (put M on the vertical axis). HAYDEN'S PPC & ONE WITH LOGAN'S PPC.

Suppose that initially Logan and Hayden are self-sufficient singles, i.e., each consumes only what s/he produces. Both Logan and Hayden decide that each wishes to consume 600H. So each devotes sufficient time to H production that s/he produces 600H, and devotes the remainder of the total time available to market production.

7. How many hours will Logan devote to producing M and H?

8. What will be Logan's production (and consumption) or M and H? Show this point on Logan's PPC.

9. How many hours will Hayden devote to producing M and H?

10. What will be Hayden's production (and consumption) or M and H? Show this point on Hayden's PPC.

Suppose that Logan and Hayden form a joint household. Nothing else changes; i.e., the time they have for producing M and H does not change and their productivities do not change.

11. (3%) Draw the new joint PPC. If your JOINT PPC is a straight line, you got it wrong. Try again. Using graph paper helps draw correct PPCs.

12. (3%) If Logan and Hayden together consume the same amount of H in their joint household as they did when they were self-sufficient (i.e., 600H+600H=1200H), how much M will they consume together in the joint household?

13. (3%) What will be the division of labor in the joint household under these circumstances? That is: How much M and H will Logan produce? How much M and H will Hayden produce?

14. (3%) Suggest a reasonable division of consumption of M and H between Logan and Hayden in the joint household under these circumstances (i.e., at the point on the joint PPC described in #12 above). Explain why you consider this a reasonable division of consumption.

15. (3%) Does the formation of this joint household lead to increased output even though Hayden has an absolute advantage in both M and H? If yes, explain the result and use your PPC graphs to show it.