Suppose that Dwight and Jim can either make salads or grill steaks. Their maximum output per hour is listed in the following table. Given the same quantity of resources, at that terms of trade (relative price ratio) could they specialize and trade so that both consume outside their own production possibilities frontier (PPF)?

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Maximum Opportunity Cost of 1 Salad Opportunity Cost of 1 Steak Maximum Number of Number of Steaks Salads Dwight 9. 1/3 steak 3 3 salads Jim 12 1/2 steak 2 salads a I salad per 1 steak b. 2 salads per I steak c. 2.5 salads per I steak d. 3 salads per 1 steak e. 3.5 salads per I steak Maximum Opportunity Cost of 1 Salad Opportunity Cost of 1 Steak Maximum Number of Number of Steaks Salads Dwight 9. 1/3 steak 3 3 salads Jim 12 1/2 steak 2 salads a I salad per 1 steak b. 2 salads per I steak c. 2.5 salads per I steak d. 3 salads per 1 steak e. 3.5 salads per I steak

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Dwight has comparative advantage in making salad while Jim has com... View the full answer