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Unformatted text preview: In Class Assignment 1. Consider the following table showing the total production of paintings and pizza per day. Paintings Production Pizza Production Abe 4 8 Bea 3 9 a. What is the opportunity cost of one painting for Abe? Bea? b. What is the opportunity cost of one pizza for Abe? Bea? c. Who has an absolute advantage in painting production? Pizza production? d. Who has a comparative advantage in producing paintings? Making pizzas? e. Who should specialize in the production of paintings? Pizzas? 2. Consider two financial planners, Phil and Frances. In an hour Phil can either produce one financial statement or answer ten phone calls, while Frances can either produce three financial statements or answer twelve calls. Does either person have an absolute advantage in producing both products? Should the two planners be self-sufficient (each producing statements and answering phones), or should they specialize? Explain....
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