Q. What is Opportunity Cost Producing Corn & Pigs.

Suppose that two people, Mary and John each live alone in an isolated region. y each have same resources available and y grow corn and raise pigs. If Mary devotes all her resources to growing corn, she can raise 200 pounds of corn per year. If she devotes all her resources to raising pigs, she can raise 50 pigs per year. (If she apportions some resources to each, n she can produce any linear combination of pigs and corn that lies between those extreme points. If John devotes all his resources to growing corn, he can raise 80 pounds of corn per year. If he devotes all his resources to raising pigs, he can raise 40 pigs per year. (If he apportions some resources to each, n he can produce any linear combination of pigs and corn that lies between those extreme points.)

What is Mary's opportunity cost of producing corn?

What is Mary's opportunity cost of producing pigs?

What is John' opportunity cost of producing corn?

What is John' opportunity cost of producing pigs?

Which person has an absolute advantage in which activities?

Which person has a comparative?

Suppose that y are thinking of each specializing completely in area in which y have a comparative advantage and n trading at a rate of 2.5 pounds of corn for 1 chicken, would y each be better off? Explain.

How would you extend above narrative to businesses, society as a whole or nations? Explain.