Now consider two farmers, Jeff and Lorissa, that can produce the above quantities of coffee OR tea.
10) What is the opportunity cost for each to produce tea? Coffee?
11) Who has a comparative advantage in producing tea? Why?
12) Suppose Jeff and Lorissa decided to trade coffee and tea with one another. Between what exchange
ratios of coffee for tea (how many tons of coffee per ton of tea) would they both benefit from trade?
Between what exchange ratios of tea for coffee (how many tons of tea per ton of coffee) would they
both benefit from trade?
13) Which of the following is correct about comparative advantage?
14) The bowed out shape of the production possibility frontier implies that as production of one good