1. **State the problem:** We need to find the opportunity cost of producing one wallet for both Hosne and Merve based on their Production Possibilities Frontiers (PPFs). 2. **Understand the PPF:** The PPF shows the trade-off between producing purses and wallets. The opportunity cost of one wallet is how many purses must be given up to produce one more wallet. 3. **Hosne's PPF:** The line goes from (0 purses, 8 wallets) to (10 purses, 0 wallets). 4. **Calculate Hosne's opportunity cost:** The slope of the PPF is $$\text{slope} = \frac{\Delta \text{wallets}}{\Delta \text{purses}} = \frac{0 - 8}{10 - 0} = \frac{-8}{10} = -\frac{4}{5}$$ This slope means for each additional purse, Hosne gives up $\frac{4}{5}$ wallets. 5. **Opportunity cost of one wallet for Hosne:** Since slope = change in wallets/change in purses = $-\frac{4}{5}$, the opportunity cost of one wallet in terms of purses is the reciprocal of the absolute value: $$\text{opportunity cost of 1 wallet} = \frac{\text{purses given up}}{\text{wallets gained}} = \frac{5}{4} \text{ purses}$$ 6. **Merve's PPF:** The line goes from (0 purses, 6 wallets) to (4 purses, 0 wallets). 7. **Calculate Merve's opportunity cost:** $$\text{slope} = \frac{0 - 6}{4 - 0} = \frac{-6}{4} = -\frac{3}{2}$$ This means for each additional purse, Merve gives up $\frac{3}{2}$ wallets. 8. **Opportunity cost of one wallet for Merve:** Reciprocal of the absolute slope: $$\text{opportunity cost of 1 wallet} = \frac{2}{3} \text{ purses}$$ **Final answer:** Hosne's opportunity cost of one wallet is $\frac{5}{4}$ purses and Merve's opportunity cost of one wallet is $\frac{2}{3}$ purses.