Group+3+Comparative+Advantage

**//Week 1: The Gains from Trade//**
Tess has 40 hours a week with which she can color or make mudpies. It takes 1 hour to color a picture, and 3 hours to produce a mudpie.
 * 1) Graph Tess' production possibility frontier (PPF), with the quantity of pictures on the vertical axis.
 * 2) What is the opportunity cost of producing a mudpie (in terms of pictures) for Tess?
 * 3) Now assume that Tess' sister Becca can also color and produce mudpies with her 40 hours of labor. However, Becca takes 2 hours to color a picture and 0.5 hours to make a mudpie. Graph Becca's PPF. What is the opportunity cost of producing mudpies for Becca?
 * 4) Which sister has the absolute advantage in producing mudpies? Which sister has the absolute advantage in producing pictures? Explain your answer.
 * 5) Should these sisters trade? Why or why not? If they should trade, which product should Becca specialize in, and why?