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The following table shows production possibilities for Jasper and Jasmine. The numbers indicate how many of each product can be produced per minute by each person.
For example, Jasper can produce 60 twinkies per minute, or 120 cupcakes per minute.
1. Compute the opportunity costs for producing a single Twinkie and a single cupcake for Jasper and for Jasmine.
2. Does either have an absolute advantage in the production of Twinkies? Cupcakes?
3. Does either have a comparative advantage in the production of Twinkies? Who?
4. Does either have a comparative advantage in the production of cupcakes? Who? Justify your answer.
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