Suppose that Cait and Emily, roommates, are planning a salsa party. They need to complete two tasks:
Question:
Suppose that Cait and Emily, roommates, are planning a salsa party. They need to complete two tasks: clean the apartment and prepare the food. In 1 hour, Cait can vacuum and dust 1 room or prepare 2 cups of guacamole. In 1 hour, Emily can vacuum and dust 2 rooms or prepare 1 cup of guacamole. Given this information, answer the following questions.
a) For Cait, what is the opportunity cost of spending an hour vacuuming?
b) For Emily, what is the opportunity cost of spending an hour vacuuming?
c) Who has a comparative advantage in vacuuming?
d) For Cait, what is the opportunity cost of spending an hour preparing guacamole?
e) For Emily, what is the opportunity cost of spending an hour preparing guacamole?
f) Who has a comparative advantage in guacamole production?
g) Could you have answered part
(f) after completing part (c)? Explain.
Step by Step Answer:
Principles Of Macroeconomics The Way We Live
ISBN: 978-1429220200
1st Edition
Authors: Susan Feigenbaum ,R. W. Hafer