Alexi spends more time in the production of tacos and Tony spends more time in the production of Cuban sandwiches. So they enjoy comparative advantage in the production of these goods respectively.
Answer: Alexi earns $4200 and Tony earns $6300. Collectively they earn $10500 per week.
<u>Explanation:</u>
The opportunity cost of Alexi for producing one Taco is <u>0.67</u> cuban sandwiches.
The opportunity cost of Tony for producing one cuban sandwich is <u>1.29</u> tacos.
<u>Tony</u> has a comparative advantage in the production of cuban sandwiches.
<u>Alexi</u> has a comparative advantage in the production of street tacos.
Combined together they will produce a total of <u>1410</u> tacos and <u>1530</u> cuban sandwiches.
Alexi will spend <u>20 hours</u> in the production of tacos and Tony will spend<u> 20 hours</u> in the production of cuban sandwiches.
Tony will specialize in cuban sandwiches and will earn<u> </u><u>$ 6300 </u>and Alexi will specialise in producing tacos and will earn<u> $ 4200</u>.
Their joint revenue will be<u> $10500</u> per week.