Tom and Abby produce rackets and balls. The graphs show their production possibi

Question

Tom and Abby produce rackets and balls. The graphs show their production possibilities. Bals(per hour) S Balls (per hour) 40- Tom allocates all his resources and produces 2 rackets and 20 balls an hour. Abby allocates all her resources and produces 2 rackets and 10 balls an hour Torn's PPF -- Abby's FPF 3 4 5 Rackets (per hour) Rackets (per hour) Tom's opportunity cost of a racket is balls. Abby's opportunity cost of a racket is balls. In the production of balls, OA. Abby; Tom; Tom OB. Tom; Abby; Abby OC. Neither Tom nor Abby; the other person; no one OD. Tom; Abby; Tom OE. Abby; Tom; Abby -_ has a lower opportunity cost than- --and- _ has a comparative advantage.

Explanation / Answer

Tom's opportunity cost of producing a racket is 10 balls (20/2)

Abby's opportunity cost of producing a racket is 5 balls (10/2)

E. Abby, Tom Abby(because Aabby's opportunity cost is half as compared ot Tom's opportunity cost.

B. Tom Abby Tom

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