Business, 14.06.2021 15:30 lahebra

Simone and Ana 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. Simone takes 3 hours to brew a gallon of root beer and 2 hours to make a pizza. Ana takes 7 hours to brew a gallon of root beer and 5 hours to make a pizza. Simone's opportunity cost of making a pizza is of root beer, and Ana'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 Simone and Ana 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. Continue without saving

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Simone and Ana are roommates. They spend most of their time studying (of course), but they leave som...

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