Andres and David each own a restaurant. The preferred menu item by customers is their sandwich-salad combo. Assume that Andres and David have the same amount of time each morning to produce sandwiches and salads.

If David only makes salads, he can prepare 100; if he only prepares sandwiches, he can produce 75. On the other hand, if Andres only produces salads, he can do 35, and if he only prepares sandwiches, he can only prepare 7.

Based on this information, answer the following questions:

a. Who has an absolute advantage in producing salads?

b. Who has an absolute advantage in producing sandwiches?

c. What is Andres' opportunity cost of producing one salad? (Provide a numeric answer.)

d. What is Andres' opportunity cost of producing one sandwich? (Provide a numeric answer.)

e. What is David's opportunity cost of producing one salad? (Provide a numeric answer.)

f. What is David's opportunity cost of producing one sandwich? (Provide a numeric answer.)

g. Who has a comparative advantage in producing salads?

h. Who has a comparative advantage in producing sandwiches?

Let's go step by step to explain the process of determining absolute advantage, opportunity cost, and comparative advantage for producing salads and sandwiches between Andres and David.

Given information:

- David can produce 100 salads and 75 sandwiches.

- Andres can produce 35 salads and 7 sandwiches.

a. Absolute advantage in producing salads:

To determine absolute advantage, we compare the production quantities of salads. David can produce 100 salads, while Andres can produce 35 salads. Since David can produce more salads, he has an absolute advantage in producing salads.

b. Absolute advantage in producing sandwiches:

To determine absolute advantage, we compare the production quantities of sandwiches. David can produce 75 sandwiches, while Andres can produce only 7 sandwiches. Therefore, David has an absolute advantage in producing sandwiches.

c. Opportunity cost for Andres to produce one salad:

Opportunity cost refers to the value of the next best alternative given up. In this case, Andres has two options: producing salads or producing sandwiches. Since Andres can produce 7 sandwiches, the opportunity cost of producing one salad is the number of sandwiches he could have made instead, which is 7.

d. Opportunity cost for Andres to produce one sandwich:

Similarly, Andres has two options: producing salads or producing sandwiches. Since Andres can produce 35 salads, the opportunity cost of producing one sandwich is the number of salads he could have made instead, which is 35.

e. Opportunity cost for David to produce one salad:

David can produce 75 sandwiches, and his opportunity cost for producing one salad is the number of sandwiches he could have made instead. Therefore, the opportunity cost of producing one salad for David is 75.

f. Opportunity cost for David to produce one sandwich:

David can produce 100 salads, and his opportunity cost for producing one sandwich is the number of salads he could have made instead. Therefore, the opportunity cost of producing one sandwich for David is 100.

g. Comparative advantage in producing salads:

To determine comparative advantage, we compare the opportunity costs of producing salads. Andres has an opportunity cost of 7 sandwiches to produce one salad, while David has an opportunity cost of 75 sandwiches. Since Andres has a lower opportunity cost, he has a comparative advantage in producing salads.

h. Comparative advantage in producing sandwiches:

Similarly, comparing the opportunity costs of producing sandwiches, David has an opportunity cost of 100 salads to produce one sandwich, while Andres has an opportunity cost of 35 salads. Since David has a lower opportunity cost, he has a comparative advantage in producing sandwiches.

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