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Lenovo Comparative Advantage ERn 3. The following table shows the number of donuts or cupcakes that John and Erica can each produce in one day. Donuts Cupcakes John 200 100 Erica 150 50 (a) Who has the absolute advantage in producing donuts? Explain. (b) Who has the comparative advantage in producing donuts? Explain. (c) Assume that John and Erica decide to specialize according to their comparative advantages and that one cupcake is exchanged for four donuts. (i) Indicate whether or not specialization and trade are beneficial to John. (ii) Indicate whether or not specialization and trade are beneficial to Erica. d) Assume that Erica discovers a new cupcake production technique that will increase her daily production of cupcakes only. Using donuts on the horizontal axis, draw a correctly labeled production possibilities curve for Erica, before and after the technology change in cupcake production