30 15 75 Fig 60 Fig Bilge Meriç Suppose that Bilge and Meriç are living in two detached islands and the only resource is their labor. The feasible production frontiers of Bilge and Meriç are as given above a. Who has an absolute advantage in grape production?Explain your answer. b. What is the relative price of Fig in Bilge's Island?Explain your answer. c. Suppose now that there is trade between the two islands. Each island will fully specialize in the production of that good in which they have comparative advantage and then export it to the other island. Who has comparative advantage in fig production? Who has comparative advantage in grape production? d. Is it possible for Meriç to consume 20 grapes and 40 figs if one grape is exchanged with 4 figs in trade with Meriç?Explain your answer. Grape Grape

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