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Rami is the better economist because he understands the concept of comparative advantage. George has a lower opportunity cost of washing windows (2.5 cookies per
Rami is the better economist because he understands the concept of comparative advantage. George has a lower opportunity cost of washing windows (2.5 cookies per window) compared to Rami (8 cookies per window). Therefore, it would be more efficient for George to wash all the windows while Rami focuses on making cookies. This way, they can maximize their total output of washed windows and cookies.
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Contemporary Management
Authors: Gareth Jones, Jennifer George
9th Edition
0077718372, 978-0077718374
