| Question | In one hour, Sue can produce 40 caps or 4 jackets and Tessa can produce 80 caps or 4 jackets. a. Calculate Sue’s of producing a cap. b. Calculate Tessa’s of producing a cap. c. Who has a comparative advantage in producing caps? d. If Sue and Tessa specialize in producing the good in which each of them has a comparative advantage, and they trade 1 jacket for 15 caps, who gains from the specialization and trade? |
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| Subject | business economics |
