Question
Nancy and Bill are auto mechanics. Nancy takes 6 hours to replace a clutch and 4 hours to replace a set of brakes. Bill takes
Nancy and Bill are auto mechanics. Nancy takes 6 hours to replace a clutch and 4 hours to replace a set of brakes. Bill takes 8 hours to replace a clutch and 6 hours to replace a set of brakes. State whether anyone has an absolute advantage at either task and, for each task, identify who has a comparative advantage.
The opportunity cost of replacing a set of brakes for Nancy is___
The opportunity cost of replacing a set of brakes for Bill is____
Bill/ Nancy/ Neither has a comparative advantage in brake replacement.
Bill/ Nancy/ Neither has a comparative advantage in clutch replacement.
Bill/ Nancy/ Neither has an absolute advantage in brake replacement.
Bill/ Nancy/ Neither has an absolute advantage in clutch replacement.
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