Output per worker per day
worker | Unit of hair care products | Unit of hot combs
Addie Monroe | 60  1hair=20/60 or .33 hot comb | 20      1hot= 60/20 or 3 hair care
Madame CJ Walker | 20   1 hair=40/20 or 2 hot comb | 40     1 hot= 20/40 or .5 hair care

Assume the two ladies above are producing with equal amounts of resources.
•	Which person has an absolute advantage in the production of hot combs? Explain how you determined your answer. Madame CJ Walker       She makes more 40>20
•	Which person has the comparative advantage in hair care production? Using the concept of opportunity cost, explain how you determined your answer Addie Monroe   Her opportunity cost is smaller ( .33 < 2)
•	If the two individuals specialize and trade with each other, who will import hot combs? Explain why? Addie Monroe will import combs. CJ Walker has the comparative and import means what you bring into your nation.
•	Now assume that the terms of trade is 1 hot comb =5 hair care products. Who is hurt the most by these terms of trade? Addie Monroe, based off this term of trade Addie is giving up too much for 1 hot comb. By herself if she made 1 hot comb, she is only giving up 3 hair care products. Since she has comparative advantage in hair care this term is too much.
•	Give an acceptable term of trade: (Go back to the video on the comparative notes and the home page to help you out)  1 hair care =  ( .33 < x < 2) hot combs     or  1 hot comb= (.5< x<3 hair care products)    So an acceptable term of trade is 1 hot comb =1.5 hair caire, or 1 hot comb for 1 hair care, 2 hot comb= 2 hair care)