This information applies to all questions on this homework assignment. We will consider two people who we can initially treat as two economies in autarky. The first economy consists only of John, and the second economy consists only of Larry. Both start off in autarky, as we said, and each produces peanut butter and orange juice using only forty hours of labor each per week. Each week, John can produce 30 quarts of orange juice if he produces no peanut butter; he can produce 25 jars of peanut butter if he produces no orange juice. Larry can produce 15 quarts of orange juice if he produces no peanut butter; he can produce 20 jars of peanut butter if he produces no orange juice. You may assume throughout the assignment that the labor hours used by John and Larry are not specialized, so that their PPFs are straight lines as opposed to bow-shaped curves. In autarky, John spends 60% of his time producing orange juice and the rest of his time producing peanut butter. Larry spends 80% of his time producing orange juice and the rest of his time producing peanut butter. Later in the assignment, John and Larry will begin to trade with each other. We can treat this as two economies trading or as what's essentially one big economy combined (to talk about gains) - it won't affect our calculations, nor will the approach be different from what we discussed in lecture and the related practice problem set. Within the appropriate questions on Homework Two. you will be given information about the specifics of this trade arrangement