Problem
Tom and Abby produce rackets and balls. The graphs show their production possibilities.
Tom uses all his resources and produces 2 rackets and 20 balls an hour. Abby uses all her resources and produces 2 rackets and 10 balls an hour.
• What is Tom's opportunity cost of producing a racket?
• What is Abby's opportunity cost of producing a racket?
• Who has a comparative advantage in producing balls?
• Who has a comparative advantage in producing rackets?