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1. Alex and Roger love writing and drawing. They write books and draw paintings. Alex can...

1. Alex and Roger love writing and drawing. They write books and draw paintings. Alex can either write three books or in the same time, he can draw two paintings. Roger can either write two books or in the same time, he can produce one painting. Assume that their opportunity costs are constant.

(a) What is the opportunity cost for Alex to write one book? What is the opportunity cost for Roger to draw one painting?

(b) Alex and Roger decide to specialize and trade.

  1. Who is the seller of paintings and who is the buyer of paintings?
  1. What is the range of price of paintings such that both Alex and Roger will be willing to trade?
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