Problem
Ken and Traci are two woodworkers who both make tables and chairs. In one month, Ken can make 3 tables or 18 chairs, whereas Traci can make 8 tables or 24 chairs.
1) Who has the absolute advantage for making tables?
2) Who has the absolute advantage for making chairs?
3) What is Ken's opportunity cost for making tables?
4) What is Ken's opportunity cost for making chairs?
5) What is Traci's opportunity cost for making tables?
6) What is Traci's opportunity cost for making chairs?
7) Who has the comparative advantage for making tables?
8) Who has the comparative advantage for making chairs?.
9) What price in terms of chairs will make trade beneficial for both Ken and Traci?