Mya and Donovan produce two goods in an 8 hour day. Mya can produce 10 in capital or 55 consumables and Donovan can produce 75 capital or 60 consumables,
Who has the absolute advantage in the production of consumables?
Who has the absolute advantage in the production of capital?
Who has comparative advantage in the production of capital?
Who has comparative advantage in the production of consumables?
What is the opportunity cost for Capital?