Question

Amy and Bill are fixing up their house by painting walls and installing electrical outlets.    ...

Amy and Bill are fixing up their house by painting walls and installing electrical outlets.

   

   In one hour, Amy can paint 8 walls, or install 6 outlets.

   

   In one hour, Bill can paint 5 walls, or install 5 outlets

c. Amy has the absolute advantage in painting/ outlets/ neither/ both , while Bill has the absolute advantage in painting/ outlets/ neither/ both.

d. Amy/ Bill/ Neither/ Both has the comparative advantage in painting. Amy/ Bill/ Neither/ Both has the comparative advantage in outlets.

e. In order to maximize their work per hour, Amy/ Bill should just paint walls, and Amy/ Bill should just install outlets.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Table: Absolute/Comparative advantage

c. Amy has the absolute advantage in both (painting and outlets), while Bill has the absolute advantage in neither (painting or outlets).

d. Amy has the comparative advantage in painting. Bill has the comparative advantage in outlets.

[Comparative advantage of Amy: 1 painting -> 6/8 or 3/4 outlet. Bill’s comparative advantage: 1 painting -> 5/5 = 1.

Bill has the comparative advantage in outlets. Bill’s comparative advantage 1 outlet -> 5/5 or 1 painting]

Amy’s comparative advantage: 1 outlet -> 8/6 or 4/3 painting.

e. In order to maximize their work per hour, Amy should just paint walls, and Bill should just install outlets.

*****

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Martha and Sheldon wallpaper and paint rooms. In one week, Martha can paint 20 rooms or...
Martha and Sheldon wallpaper and paint rooms. In one week, Martha can paint 20 rooms or wallpaper 5 rooms. In the same amount of time, Sheldon can paint 10 rooms or wallpaper 4 rooms. Based on their talents, who should do what? Who has comparative advantage and absolute advantage in painting and wallpapering?
Paco's Painting Service does interior and exterior house painting. They have a production function that uses...
Paco's Painting Service does interior and exterior house painting. They have a production function that uses three factors: brushes (?), paint (?), and labor (?). In the short run, Paco's has already committed to orders of brushes and paint, but can adjust the number of hours of labor they use from week to week. Therefore, their short-run production function depends only on labor and is given by ?(?) = √?/ 2 , which implies that Paco's marginal product of labor...
Coffee Salmon Brazil 40 20 Alaska 20 20 Table 4-2: Coffee and Salmon Production Possibilities II...
Coffee Salmon Brazil 40 20 Alaska 20 20 Table 4-2: Coffee and Salmon Production Possibilities II 5. (Table 4-2 Coffee and Salmon Production Possibilities II) This table shows the maximum amounts of coffee and salmon that Brazil and Alaska can produce if they just produce one good. Brazil has: a. an absolute advantage in producing coffee only b. an absolute advantage in producing salmon only c. an absolute advantage in producing both coffee and salmon d. an absolute advantage in...
This question has 12 parts and a graph to be submitted separately. Be sure to answer...
This question has 12 parts and a graph to be submitted separately. Be sure to answer them​ all! Norway and the U.S. each produce steel and timber according to the following​ schedule: Steel Timber Norway 7 14 United States 8 32 1. Which country has the absolute advantage in steel​? A. Both B. Norway C. United States D. Neither 2. Which country has the absolute advantage in​ timber? A. United States B. Norway C. Both D. Neither 3. Which country...
DISCUSSION POST: Read Babe Ruth and Comparative Advantage [PDF] and post to the Chapter 3 Discussion...
DISCUSSION POST: Read Babe Ruth and Comparative Advantage [PDF] and post to the Chapter 3 Discussion about this material. Then pick another person who excelled in more than one activity. Clease try to avoid picking those who fit neatly into this category. The most obvious are sports figures like Bo Jackson and Deion Sanders who played two sports at the highest level (and also Michael Jordan who also tried this, with little success in his second sport). Avoid these people...
2. A demand curve indicate a. the maximum willingness to pay for a given quantity b.the...
2. A demand curve indicate a. the maximum willingness to pay for a given quantity b.the consumer's gain from exchange c.the market price of a good or service d. the equilibrum quantity 3. trade permitts countries to a. consume more than they capable of producing b.produce based on their comparative advantage c.specialize more fully d.all of above 4. which of the following dose not impact how elastic supply is? a. whether the supply is local or global b.the share of...
1.) True or False? For all societies, resources are scarce, and technology is limited, while people’s...
1.) True or False? For all societies, resources are scarce, and technology is limited, while people’s wants and needs for goods and services seem to be unlimited. (2 points) 2.) (1 point) Adam Smith’s “invisible hand” refers to a.) the subtle and often hidden methods that businesses use to profit at consumers’ expense. b.) the ability of free markets to reach desirable outcomes, despite the self-interest of market participants. c.) the ability of government regulations to benefit consumers, even if...
In the case below please answer the following 4- 6 pages 1. State the ethical issues...
In the case below please answer the following 4- 6 pages 1. State the ethical issues 2. State the legal issues 3. Discuss the options/debate the issues 4. Discuss extra info needed to make decision Rina Cummings has worked three 12-hour shifts every week at Amazon’s gargantuan New York City warehouse, called JFK8, on Staten Island since it first began operations in late 2018. As a sorter on the outbound ship dock, her job is to inspect and scan a...
Your company has been granted an exclusive license to sell ice cream. No one has ever...
Your company has been granted an exclusive license to sell ice cream. No one has ever sold ice cream here before, so you have no idea what the demand will look like. You suspect that people like to buy more ice cream on hotter days, but you are very unsure about what price you should charge to maximize your profit. Over your first season selling ice cream, you vary your price each week for the 10 weeks your license allows...
Note:  100% plagiarism in the above paragraph please remove the plagiarism less than 15 % . CHALLENGES...
Note:  100% plagiarism in the above paragraph please remove the plagiarism less than 15 % . CHALLENGES / OPPORTUNITIES One of the major challenges is to change the people’s perspective of PepsiCo as an unhealthy soft drink producer. Due to the link of soft drinks to obesity and diabetes, the new CEO wants to reinvent Pepsi as a healthy food producer rather than a snacks producer. Although this is a good plan for the PepsiCo to consider, people who are used...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT