Question
You and your roommate Chris must clean your apartment before your parents visit for Parents' Weekend. By yourself, you can clean the entire apartment in
You and your roommate Chris must clean your apartment before your parents visit for Parents' Weekend. By yourself, you can clean the entire apartment in two days, and Chris can clean the entire apartment in two days. Together, you could both clean the apartment in one day. Additionally, you can earn $100 per day working as a computer consultant, while Chris can earn $50 per day working as a disk jockey at the local radio station.
a. Who has a lower opportunity in cleaning the apartment? Why?
b. According to the principle of comparative advantage, who should clean the apartment? Explain. What arrangement would make you both better off?
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