Emily and Lisa are the two employees at an establishment called The Munch Brunch. They serve pancakes and eggs. The table below shows how much Emily and Lisa could make in one hour:

	Pancakes	Eggs
Emily	20	100
Lisa	15	60

 

1. Draw the PPFs for Emily and Lisa
2. Who has the absolute advantage in pancakes? In eggs?
3. Who has the comparative advantage in pancakes? In eggs?
4. What is Emily's opportunity cost of make pancakes? What is Lisa's opportunity cost of making pancakes?
5. Name something that could cause Emily's PPF to shift outward or tilt. Why?