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.
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
Problem 2QQ
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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
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 |
||
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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