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Q. Jake takes 40 minutes to fry a chicken and 2 minutes to toast a slice of bread. His brother Elwood takes 20 minutes to fry a chicken and 5 minutes to toast a slice of bread. Calculate each brother's opportunity cost for one hour of work.
a. Who has a comparative advantage frying chicken?
b. Who has a comparative advantage toasting bread?
c. Will the brothers gain if they specialize? Illustrate your answer with an example.
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The percentage effect which increase in output will have on the profit made from producing and selling commodity Alpha will be.
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