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Suppose that you and your best friend produce apples and face masks

Economics

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Suppose that you and your best friend produce apples and face masks. The table below shows what each of you can produce of these two goods. Item Apples Masks Production levels in units per week You 10 2 Your friend 20 3 5.1. Determine whether you or your friend have absolute advantage in the production of apples and the production of masks. 5.2. Determine whether you or your friend have comparative advantage in the production of apples and the production of masks. What is the opportunity cost of producing these goods for you and for your friend? 5.3. If you and your friend split your time equally to produce apples and masks and exchange between you too is not possible, how many units of each of these goods can you and your friend consume? 5.4. If you and your friend specialize in producing what each of you is best at, determine who will produce apples and who will produce masks. 5.5. What is the new consumption level of apples and masks for you and for your friend if trade is possible? What are the gains from trade? 5.6. What is the price of the goods that makes this trade beneficial for you and your friend? 5.7. What price (or price range) would be unacceptable to you? 5.8. What price (or price range) would be unacceptable to your friend?