Samantha and Jim run a business that sets up and tests computers. Assume that Samantha and Jim can switch between setting up and testing computers at a constant rate. The following table applies. Minutes Needed to Number of Computers Set Up or Tested in a 40-Hour Week Set Up 1 Computer Test 1 Computer Computers Set Up Computers Tested Samantha 48 60 50 40 Jim 30 40 80 60 Use the table above to calculate the following: a. Samantha’s opportunity cost of setting up one computer b. Samantha’s opportunity cost of testing one computer testing c. Jim’s opportunity cost of setting up one computer
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Samantha and Jim run a business that sets up and tests computers. Assume that Samantha and Jim can switch between setting up and testing computers at a constant rate. The following table applies.
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Use the table above to calculate the following:
a. Samantha’s b. Samantha’s opportunity cost of testing one computer testing |
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c. Jim’s opportunity cost of setting up one computer d. Jim’s opportunity cost of testing one computer e. Who has the f. Who has the absolute advantage in testing one computer? g. Who has h. Who has comparative advantage in testing one computer? i. What should Samantha specialize in? j. What should Jim specialize in? |
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