Neha and Teresa are roommates. They spend most of their time studying (of course), but they leave some time for their favorite activities: making pizza and brewing root beer. Neha takes 3 hours to brew a gallon of root beer and 2 hours to make a pizza. Teresa takes 7 hours to brew a gallon of root beer and 5 hours to make a pizza. A. Neha's opportunity cost of making a pizza isgallon of root beer, and Teresa's opportunity cost of making a pizza is gallon of root beer. has an absolute advantage in making pizza, andhas a comparative advantage in making pizza.
B. If Neha and Teresa trade foods with each other, will trade away pizza in exchange for root beer.
C. The price of pizza can be expressed in terms of gallons of root beer. The highest price at which pizza can be traded that would make both roommates better off isof root beer, and the lowest price that makes both roommates better off isof root beer per pizza.