Problem
1. Use the following information to work Problems 34 and 35. He Shoots! He Scores! He Makes Movies! NBA All-star Baron Davis and his school friend, Cash Warren, premiered their first movie Made in America at the Sundance Festival in January 2008. The movie, based on gang activity in South Central Los Angeles, received good reviews. Source: The New York Times, February 24, 2008 34.
a. Does Baron Davis have an absolute advantage in basketball and movie directing and is this the reason for his success in both activities?
b. Does Baron Davis have a comparative advantage in basketball or movie directing or both and is this the reason for his success in both activities?
2. a. Sketch a PPF between playing basketball and producing other goods and services for Baron Davis and for yourself.
b. How do you (and people like you) and Baron Davis (and people like him) gain from specialization and trade?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.