Back to Assignment Attempts Average / 4 7 . Ch. 3 Problems and Applications Q3 Deborah and Janet are roommates. They spend most of their time studying (of course), but they leave some time for their favorite activities: making pizza and brewing root beer. Deborah takes 3 hours to brew a gallon of root beer and 2 hours to make a pizza. Janet takes 7 hours to brew a gallon of root beer and 5 hours to make a pizza. Deborah's opportunity cost of making a pizza is 2/3 gallon of root beer, and Janet's opportunity cost of making a pizza is of root beer. Deborah has an absolute advantage in making pizza, and _Janet has a comparative advantage in making pizza. If Deborah and Janet trade foods with each other, Deborah will tradepizza in exchange for root beer. The price of pizza can be expressed in terms of gallons of root beer. The highest price at which pizza can be traded that would make both roommates better off is of root beer, and the lowest price that makes both roommates better off is of root beer per pizza. Grade It Now Save Continue Continue without saving