Riley and Chad run a water sports business in Noosa. They have to wash the surfboards/kayaks each time they are used and need to decide who should wash what to minimise opportunity cost.   Surfboards (quantity/hr) Kayaks (quantity/hr) Riley 45 30 Chad 30 40   Which of the following statements are true:     Chad should specialise in washing kayaks.     Riley has a comparative advantage in washing surfboards.     Riley's opportunity cost of washing 1 kayak is washing 1.5 surfboards.     Riley should specialise in washing surfboards because he has an absolute advantage in washing surfboards.

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter3: Interdependence And The Gains From Trade
Section3.2: Comparative Advantage: The Driving Force Of Specilization
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Riley and Chad run a water sports business in Noosa. They have to wash the surfboards/kayaks each time they are used and need to decide who should wash what to minimise opportunity cost.

 

Surfboards

(quantity/hr)

Kayaks

(quantity/hr)

Riley 45 30
Chad 30 40

 

Which of the following statements are true:

    Chad should specialise in washing kayaks.
    Riley has a comparative advantage in washing surfboards.
    Riley's opportunity cost of washing 1 kayak is washing 1.5 surfboards.
    Riley should specialise in washing surfboards because he has an absolute advantage in washing surfboards. 
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