: Consider two agents, Alice and Bob, who are each capable of producing two goods cornbread and bowls of chili. Alice and Bob have constant opportunity cost technology for producing these two goods. The table below the maximum they can produce of the two goods if they devote themselves to only producing that good. The format of this table is similar to what we did in class. Player Cornbread Chili Alice 15 10 Bob 1 5 In other words, if Bob devoted himself to only producing chili, he could produce 1 bowl, but if he devoted himself to only producing cornbread, he could produce 5 pans. Before Bob and Alice met they had their own personal production and consumption plans. They made what they ate and only ate what they made. Their consumption of cornbread and chili was: الي اليه Player Cornbread Chili Alice 6 3 Bob 0 5 a. Show the equations of the production possibilities frontier for Alice and Bob b. Who has the comparative advantage in the production of Cornbread? Chili? be clear about why you say they have a comparative advantage. Calculations are more than appropriate. c. Now that Bob and Alice know each other, and they know that they both like chili and cornbread, and can produce both, they are curious if it is possible for them to specialize in the production of either chili or cornbread, and if it is possible for them to have more of these two goods. Propose a production plan that results in the production of at least as much as they had before and more of at least one good. d. Propose a consumption plan that makes both Alice and Bob at least as well off as before the specialized and engaged in trade and at least one of them better off.

Have a writer answer this question by clicking below. If you have any questions you can contact us via live chat.