Tom hanks and a man named wilson are stranded on a


Tom Hanks and a man named Wilson are stranded on a tropical island. In one hour Tom can cut down 12 coconuts or catch 8 fish. In one hour Wilson can cut down 14 coconuts or catch 7 fish.

A) Who has the comparative advantage at producing coconuts?

B) Who has the comparative advantage at producing fish?

C) What is Tom's opportunity cost of producing a coconut?

D) If Tom and Wilson specialize and trade with each other, what is the range of acceptable terms of exchange of coconuts for fish?

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