Identify who should specialize in bb and whom in dd, Microeconomics

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Identify who should specialize in bb and whom in dd

Problem

Barney retires and is replaced by Bamm-Bamm Bamm-Bamm takes 1/2 hour to make a BB, 2/, hour to make a DD and has 8 hours of labor a day.

a) Draw Fred & Bamm-Bamm's PPFs.

b) Identify who, if anyone, has an absolute advantage in BB & DD.

c) Identify who, if anyone, has a comparative advantage in BB & DD.

d) Identify who should specialize in BB and whom in DD.

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Microeconomics: Identify who should specialize in bb and whom in dd

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