Arthur has no comparative advantage Ben should do both tasks because he has an absolute advantage in both Arthur has a comparative advantage in shearing sheep and Ben has a comparative advantage in milking goats ID: 781574
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Slide1
Arthur can milk a goat in 10 minutes and shear a sheep in 4 minutes. Ben can milk a goat in 6 minutes and shear a sheep in 3 minutes. Which statement below is true?
Arthur has no comparative advantage.
Ben should do both tasks because he has an absolute advantage in both.
Arthur has a comparative advantage in shearing sheep and Ben has a comparative advantage in milking goats.
Arthur has a comparative advantage in milking goats and Ben has a comparative advantage in shearing sheep.
None of the above statements is true.
Slide2Arthur’s opportunity cost of milking a goat is?
10/4=2.5 sheep shorn
Ben’s opportunity cost of milking a goat is ?
6/3=2 sheep shorn
Arthur’s opportunity cost of sheering a sheep is?
Ben’s opportunity cost of shearing a sheep is?
Comparative advantage goes to whom?
Comparative advantage goes to whom?
Ben
4/10=.4 goats milked
3/6=.5 goats milked
Arthur
Slide3Arthur can milk a goat in 10 minutes and shear a sheep in 4 minutes. Ben can milk a goat in 6 minutes and shear a sheep in 3 minutes. Which statement below is true?
Arthur has no comparative advantage.
Ben should do both tasks because he has an absolute advantage in both.
Arthur has a comparative advantage in shearing sheep and Ben has a comparative advantage in milking goats.
Arthur has a comparative advantage in milking goats and Ben has a comparative advantage in shearing sheep.
None of the above statements is true.
Slide4Arthur can make 12 hamburgers per hour or 4 steaks per hour. Ben can make
8
hamburgers per hour or 3 steaks per hours. Which statement below is true.
Arthur has no comparative advantage
Ben should do both tasks because he has an absolute advantage in both.
Arthur has a comparative advantage in making steaks and Ben has a comparative advantage in making hamburgers.
Arthur has a comparative advantage in making hamburgers and Ben has a comparative advantage in making steaks.None of the above statements is true.