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Freda and Ervin are physicians who work together in a family practice. They need to determine who has a comparative advantage in seeing patients for
Freda and Ervin are physicians who work together in a family practice. They need to determine who has a comparative advantage in seeing patients for sports physicals and who has a comparative advantage in doing minor surgeries/procedures in the office such as stitches, mole removals, freezing warts, and nail removals. Freda and Ervin have already determined how long it takes each one of them to complete sports physicals and minor surgeries/procedures. What is the second step out of the three- step recipe to determine who has the comparative advantage? Freda and Ervin should determine the variable costs of doing sports physicals and minor surgeries/procedures. Freda and Ervin should determine who has the lowest opportunity cost in doing sports physicals and who has the lowest opportunity cost in doing minor surgeries/procedures. Freda and Ervin need to determine the total costs. Freda and Ervin must determine the opportunity cost of doing sports physicals and minor surgeries/procedures for each of them
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