Arthur can milk a goat in 10 minutes and shear a sheep in 4 minutes

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Presentation transcript:

Arthur can milk a goat in 10 minutes and shear a sheep in 4 minutes Arthur can milk a goat in 10 minutes and shear a sheep in 4 minutes. Ben can milk a goat in 6 minutes and shear a sheep in 3 minutes. Which statement below is true? Arthur has no comparative advantage. Ben should do both tasks because he has an absolute advantage in both. Arthur has a comparative advantage in shearing sheep and Ben has a comparative advantage in milking goats. Arthur has a comparative advantage in milking goats and Ben has a comparative advantage in shearing sheep. None of the above statements is true.

Arthur’s opportunity cost of milking a goat is? 10/4=2.5 sheep shorn Ben’s opportunity cost of milking a goat is ? 6/3=2 sheep shorn Comparative advantage goes to whom? Ben Arthur’s opportunity cost of sheering a sheep is? Ben’s opportunity cost of shearing a sheep is? 4/10=.4 goats milked 3/6=.5 goats milked Comparative advantage goes to whom? Arthur

Arthur can milk a goat in 10 minutes and shear a sheep in 4 minutes Arthur can milk a goat in 10 minutes and shear a sheep in 4 minutes. Ben can milk a goat in 6 minutes and shear a sheep in 3 minutes. Which statement below is true? Arthur has no comparative advantage. Ben should do both tasks because he has an absolute advantage in both. Arthur has a comparative advantage in shearing sheep and Ben has a comparative advantage in milking goats. Arthur has a comparative advantage in milking goats and Ben has a comparative advantage in shearing sheep. None of the above statements is true.

Arthur can make 12 hamburgers per hour or 4 steaks per hour Arthur can make 12 hamburgers per hour or 4 steaks per hour. Ben can make 8 hamburgers per hour or 3 steaks per hours. Which statement below is true. Arthur has no comparative advantage Ben should do both tasks because he has an absolute advantage in both. Arthur has a comparative advantage in making steaks and Ben has a comparative advantage in making hamburgers. Arthur has a comparative advantage in making hamburgers and Ben has a comparative advantage in making steaks. None of the above statements is true.