Reference no: EM132649498

John and Diane are the only two people living on a desert island. They have two sources of food, hunting rabbits and fishing. For each hour John spends hunting, he is able to catch one rabbit. For each hour he spends fishing, he can catch two fish. For each hour Diane spends hunting, she is able to catch two rabbits and for each hour fishing, she can catch two fish. (Assume each person spends 8 hours a day hunting or fishing.)

-Explain John's opportunity cost for catching a rabbit and Diane's opportunity cost.

-Identify the presence of absolute advantage, if any.