Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Scott and Jenni used to go out to eat every day, but recently have decided to stay at home and cook two meals a day.

Scott and Jenni used to go out to eat every day, but recently have decided to stay at home and cook two meals a day. Both are able to make equally tasty meals, but it takes Scott 40 minutes to make a meal while it only takes Jenni 20 minutes. Then they have to wash the dishes. Each of them takes 30 minutes to do the dishes.

a. If each makes one meal and does the dishes once per day, how much time total has Scott spent? How about Jenni?

b. If Jenni decides to cook every meal and make Scott do all the dishes, how much time will Jenni save (compared to your answer in part a.)? Will Scott save any time?

c. What is Scott's opportunity cost (in terms of number of times doing the dishes) for making one meal? What is Jenni's opportunity cost for one meal?

d. Who has the absolute advantage in making meals? Who has the absolute advantage in doing dishes?

e. Who has the comparative advantage in making meals? Who has the comparative advantage in doing dishes?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Macroeconomics Principles And Policy

Authors: William J. Baumol, Alan S. Blinder

11th Edition

0324586213, 978-0324586213

More Books

Students also viewed these Economics questions

Question

Determine miller indices of plane A Z a/2 X a/2 a/2 Y

Answered: 1 week ago