Question

Suppose that two people, Michelle and James each live alone in anisolated region. They each have the same resources available, andthey grow potatoes and raise chickens. If Michelle devotes all herresources to growing potatoes, she can raise 200 pounds of potatoesper year. If she devotes all her resources to raising chickens, shecan raise 50 chickens per year. (If she apportions some resourcesto each, then she can produce any linear combination of chickensand potatoes that lies between those extreme points. If Jamesdevotes all his resources to growing potatoes, he can raise 80pounds of potatoes per year. If he devotes all his resources toraising chickens, he can raise 40 chickens per year. (If heapportions some resources to each, then he can produce any linearcombination of chickens and potatoes that lies between thoseextreme points.)
what is michelles opportunity cost of producing potatoes
what is michelles opportunity cost of producing chickens
what is james opportunity cost of producing potatoes
what is james opportunity cost of producing chickens
which person has an absolute advantage in which activities.
which person has comparative advantage in potatoes
which person has comparative advantage in chicken
Suppose that they're thinking of each specializing completely inthe area in which they have a comparative advantage, and thentrading at a rate of 2.5 pounds of potatoes for one chicken, wouldthey each be better off? Explain?
How would you extend the above narrative to businesses, society asa whole or nations? Explain