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Following the tremendous success of the 'Matthew Hayden Cookbook', we are once more welcomed into the home-and, more importantly, the kitchen!- of Australia's gourmet cricketer for a feast of entertaining stories and mouth-watering recipes. ... As Matt says, 'If a cricketer can cook, surely you can have a crack at it!'
a. Does Australian test cricketer Hayden have an absolute advantage in cricket and food writing? Is this the reason for his success in both activities?
b. Does Hayden have a comparative advantage in cricket or food writing, or both of them, and is this the reason for his success in both activities?
c. Sketch a PPF between playing cricket and producing other goods and services for Hayden and for yourself.
d. How do you (and people like you) and Hayden (and people like him) gain from specialisation and trade?
Assume that a shoe salesman learned the price elasticity of demand for her products is -1.5. How many percent will increase in total sales (revenue) if she cuts the price by 10%?
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