Question: in person-hours, movies are measured in units and TV interviews are measured in number of shows. The table below shows time requirements to produce a movie and TV interviews by Angelina and Brad. (It is assumed that the time requirements per movie or TV interview remain the same regardless of the total time spent on the production of each). Both Angelina and Brad have 100 hours of time available, which can be allocated between the two activities. Suppose that both of them have to get as many of both activities done as possible.

a. Graph the production possibilities frontier (PPF) for both Angelina and Brad (separately) clearly labeling the axes. (Note: The time requirements remain constant irrespective of the quantity produced.)

b. What is Angelina's opportunity cost of producing an extra movie? What is Brad's?

c. What is Angelina's opportunity cost of giving an extra TV interview? And for Brad?

d. Who has the comparative advantage in interviews?

e. Diagrammatically illustrate the Joint PPF for Brad and Angelina assuming they allocate time based on the principle of comparative advantage.

Angelina Brad

1 movie 20 hrs 25 hrs

1 TV interview 15 hrs 10 hrs