1. Should Eli Manning Mow His Own Lawn? A quick lesson in comparative advantage

2. Eli Manning isn’t just a great quarterback, he is a great athlete…he can probably run faster, lift more, and work faster than most people. Eli Manning isn’t just a great quarterback, he is a great athlete…he can probably run faster, lift more, and work faster than most people.

3. In fact, he can probably mow his lawn faster than anybody else. But should he? In fact, he can probably mow his lawn faster than anybody else. But should he?

4. Let’s say that Eli can mow his lawn in 2 hours. In that same time, he could earn $100,000 filming a commercial for Gatorade. Let’s say that Eli can mow his lawn in 2 hours. In that same time, he could earn $100,000 filming a commercial for Gatorade.

5. In contrast, Bubba Gump, the kid next door can mow Eli’s lawn in 4 hours. In that same 4 hours he could work at McDonald’s and earn $28. In contrast, Bubba Gump, the kid next door can mow Eli’s lawn in 4 hours. In that same 4 hours he could work at McDonald’s and earn $28.

6. In this case, Eli’s opportunity cost is $100,000 and Bubba’s is $28. In this case, Eli’s opportunity cost is $100,000 and Bubba’s is $28. Eli has an absolute advantage in mowing lawns because he can do the work in less time. Eli has an absolute advantage in mowing lawns because he can do the work in less time. Bubba has the comparative advantage because he has the lower opportunity cost. Bubba has the comparative advantage because he has the lower opportunity cost.

7. The gains in trade are tremendous. Eli should make the commercial and hire Bubba to mow his lawn. As long as he pays Bubba more than $28 and less than $100,000, both of them are better off. The gains in trade are tremendous. Eli should make the commercial and hire Bubba to mow his lawn. As long as he pays Bubba more than $28 and less than $100,000, both of them are better off.