Essay
The table below describes the production possibilities for Lee and Amy in a four-hour shift.
a. What is the opportunity cost of one coffee for each person? What is the opportunity cost of one croissant?
b. Who has a comparative advantage in coffees? Who has a comparative advantage in croissants?
c. Who has an absolute advantage in coffees? Who has an absolute advantage in croissants?
d. Who should produce coffees? Who should produce croissants?
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a. The opportunity cost of one coffee fo...View Answer
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