Produce two products-hamburgers and t-shirts

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Reference no: EM13859473

Suppose Mike and Johnson produce two products- hamburgers and T-shirts. Mike produces 10 hamburgers or 3 T-shirts a day and Johnson produces 7 hamburgers or 4 T-shirts. Assuming they can devote time in making either hamburgers or T-shirts.

a. Draw the production possibility curve

b. Who enjoys the absolute advantage of producing both?

c. Who has a higher opportunity cost of making T-shirts?

d. Who has a comparative advantage in producing hamburgers?

Reference no: EM13859473

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