1. Michael and Angelo live in a small town in Italy. They work as artists. Michael is the more productive artist. He can produce 10 small sculptures each day but only 5 paintings. Angelo can produce 6 sculptures each day but only 2 paintings.

a. What is the opportunity cost of a painting for each artist?

b. Based on your answer in part (a), who has a comparative advantage in producing paintings?

c. If the two men decide to specialize, who should produce the sculptures and who should produce the paintings?

Transcribed Image Text:

Output per day Sculptures Michael 10 Angelo 6 Paintings 5 2