Posted: January 10th, 2022
Kristen and Anna live in the beach town of Santa Monica.They own a small business in which they make wristbandsand pot holders and sell them to people on the beach. Asshown in the table on the following page, Kristen can make15 wristbands per hour but only 3 pot holders. Anna is a bitslower and can make only 12 wristbands or 2 pot holders inan hour.OUTPUT PER HOURWRISTBANDS POT HOLDERSKristen 15 3Anna 12 2a. For Kristen and for Anna, what is the opportunity cost of apot holder? Who has a comparative advantage in the productionof pot holders? Explain your answer.b. Who has a comparative advantage in the production ofwristbands? Explain your answer.
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