Business
Business, 12.01.2021 17:50, finlchey3860

Rosa and Alyssa are roommates. They spend most of their time studying (of course), but they leave some time for their favorite activities: making pizza and brewing root beer. Rosa takes 3 hours to brew a gallon of root beer and 2 hours to make a pizza. Alyssa takes 7 hours to brew a gallon of root beer and 5 hours to make a pizza. Rosa's opportunity cost of making a pizza is ? of root beer, and Alyssa's opportunity cost of making a pizza is ? of root beer. ? has an absolute advantage in making pizza, and ? has a comparative advantage in making pizza. If Rosa and Alyssa trade foods with each other, ? will trade away pizza in exchange for root beer. The price of pizza can be expressed in terms of gallons of root beer. The highest price at which pizza can be traded that would make both roommates better off is ? of root beer, and the lowest price that makes both roommates better off is ? of root beer per pizza.

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Rosa and Alyssa are roommates. They spend most of their time studying (of course), but they leave so...

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