2) Ken and Traci are two woodworkers who both make tables and chairs. In one month, Ken...
Question:
2) Ken and Traci are two woodworkers who both make tables and chairs. In one month, Ken can make 3 tables or 18 chairs, whereas Traci can make 8 tables or 24 chairs.
a. Who has the absolute advantage for making tables?______
b. Who has the absolute advantage for making chairs? _____________
c. What is Ken's opportunity cost for making tables? _____________
d. What is Ken's opportunity cost for making chairs? ______________
e. What is Traci's opportunity cost for making tables? _______________
f. What is Traci's opportunity cost for making chairs? _______________
g. Who has the comparative advantage for making tables?___________ h. Who has the comparative advantage for making chairs?.
I. What price in terms of chairs will make trade beneficial for both Ken and Traci? _____________________
*****Please explain why you chose your answer