Question

# ROOMS CLEANED IN 1 HOUR	# MEALS COOKED IN 1 HOUR
Jacob	2	4
William	3	9

What is the minimum William would need to receive from Jacob to be willing to cook another meal?

Answer 1

Opportunity cost of cleaning room -

Jacob = 4/2 = 2 meals per room

Williams = 9/3=3 meals per room

On other hand,

opportunity cost of cooking meal -

Jacob = 2/4 = 0.5 room per meal

William = 3/9 = 1/3 room per meal

As William's opportunity cost of cooking meal is lesser than Jacob's he is specialized in cooking meal and Jacob can clean rooms bceause Jacob is specialied in cleaning room.

In order to make trade, to make William one more meal for Jacob, jacob would be require to clean 1/3 room more at least beacuse it is the opportunity cost of William's for cooking one more meal.

Thus, William would need to receive 1/3 room more clean from Jacob to be willing to cook another meal.