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Winnie and Tigger both need to gather honey and also pick some berries. The following table describes how much each of them can accomplish in one hour if that hour is spent either picking berries or gathering honey:
Berries Picked in 1 Hour: Honey gathered in 1 Hour:
Tigger: 3 pints of Berries 1 pint of Honey
Winnie: 6 pints of Berries 6 pints of Honey
(a) Calculate the opportunity costs of both activities for both Woodstock and
(b) Demonstrate that they could both be made better off by trading tasks and specializing.
(c) Use excel charts to demonstrate a diagram which show the production possibilities curve for an 8 hour workday for Tigger might shift if the two of them were to reach an agreement to trade berries for honey at the average (or mean) opportunity cost for the two of them.
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