Suppose that Rob and Big both raise animals and sell them. Because Rob and Big have...

Suppose that Rob and Big both raise animals and sell them. Because Rob and Big have different talents, they have varying abilities to raise these animals. In 1 day, Rob can produce either 10 cows or 20 pigs. In 1 day, Big can produce either 9 cows or 36 pigs.

Assume that Rob and Big decide to specialize completely and trade with one another.

a) After specialization, suppose that Rob and Big trade with one another and Rob sends Big 61 cows. In order for both Rob and Big to benefit from trade, what is the least quantity of pigs that Big must send Rob? Round your answer to two decimal places.

b) In order for both Rob and Big to benefit from trade, what is the greatest quantity of pigs that Big must send Rob? Round your answer to two decimal places.

Expert Solution

Rahul Sunny answered 1 year ago

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