Essay
John can milk 20 cows or feed 40 calves in one hour. Jared can milk 10 cows or feed 50 calves in one hour.
a. Who has the absolute advantage in milking cows? Who has the absolute advantage in feeding calves?
b. Who has the comparative advantage in milking cows? Who has the comparative advantage in feeding calves?
c. If John and Jared, who have been dividing their time equally between milking and feeding, each specialise in the activity in which they have a comparative advantage, how many additional cows can be milked and calves fed per hour?
Correct Answer:
Verified
a. John has an absolute advantage in mil...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q7: Adam Smith's book An Inquiry into the
Q24: Graph 3-2 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8859/.jpg" alt="Graph 3-2
Q74: Table 3-1<br> <span class="ql-formula" data-value="\begin{array}{|l|c|c|c|c|}\hline&\text
Q93: A Korean worker can produce 10 cars
Q96: One reason trade benefits both parties is
Q121: Differences in opportunity cost and comparative advantage
Q126: Table 3-2<br> <span class="ql-formula" data-value="\begin{array}{|c|c|c|c|c|}\hline&\text
Q127: Table 3-4<br> <span class="ql-formula" data-value="\begin{array}{|l|c|c|c|c|}\hline&\text
Q144: The only two countries in the world,
Q148: George and Martha face the production possibilities