Tom and Abby produce rackets and balls The graphs show their

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.

Solution

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