Question

Sheldon can solve 50 physics problems per hour or 30 math problems per hour. Leonard can...

Sheldon can solve 50 physics problems per hour or 30 math problems per hour. Leonard can solve 30 physics problems per hour or 25 math problems per hour.

_______ has an absolute advantage in solving physics problems and _______ has an absolute advantage in solving math problems.


       
Sheldon; Neither

       
Leonard; Leonard

       
Sheldon; Leonard

       
Sheldon; Sheldon

       
Leonard; Neither

Sheldon can solve 50 physics problems per hour or 30 math problems per hour. Leonard can solve 30 physics problems per hour or 25 math problems per hour.

_______ has a comparative advantage in solving physics problems and _______ has a comparative advantage in solving math problems.

       
Sheldon; Neither

       
Sheldon; Leonard

       
Sheldon; Sheldon

       
Leonard; Leonard

       
Leonard; Neither

Sheldon can solve 50 physics problems per hour or 30 math problems per hour. Leonard can solve 30 physics problems per hour or 25 math problems per hour.

Sheldon’s opportunity cost of one math problem is:

       
0.6 physics problems

       
1.67 physics problems

       
1.2 physics problems

       
0.83 physics problems

       
Sheldon has no opportunity costs concerning math problems

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Answer #1

1. Sheldon; Sheldon
(Sheldon can produce more of both problems than Leonard.)

2. Sheldon; Leonard
(Opportunity cost of 1 maths problem for Sheldon = physics problem given up/maths problem solved = 50/30 = 1.67 physics problem
Opportunity cost of 1 maths problem for Leonard = physics problem given up/maths problem solved = 30/25 = 1.2 physics problem
So, Leonard has a comparative advantage in maths problem because of lower opportunity cost and thus Sheldon will have a comparative advantage in physics problems.)

3. 1.67 physics problems
(Opportunity cost of 1 maths problem for Sheldon = physics problem given up/maths problem solved = 50/30 = 1.67 physics problem)

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