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

Answer rating: 100% (QA)

a Ken has the absolute advantage for making tables since he can produce more tables 3 tables compare... View the full answer