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Tom and Abby produce rackets and balls. The graphs show their production possibilities. Tom uses a ...
Tom and Abby produce rackets and balls. The graphs show their production possibilities. Tom uses all his resources and produces 2 rackets and 4 balls an hour. Abby uses all her resources and produces 2 rackets and 8 balls an hour. What is Tom's opportunity cost of producing a racket? What is Abby's opportunity cost of producing a racket? Who has a comparative advantage in producing balls? Who has a comparative advantage in producing rackets?