Question

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?

Answer 1

Absolute advantage depend on which one can do higher in absolute terms means the count should be higher and that is Martha has an absolute advantage in both the work, room as well as wallpapers.

because Martha can paint 20 rooms or wallpaper 5 rooms which are higher than Sheldon

========

Who should do what is depend on the comparative advantage?

Comparative advantage depends on the lower opportunity cost of the work

The opportunity cost of a good = number of units of other good /number of units of the good

The opportunity cost of paint a room for Martha =5/20=0.25 wallpaper a room

The opportunity cost of pain a room for Sheldon =4/10=0.4   wallpaper a room

SO Martha has a comparative advantage in paint and Sheldon in wallpaper.

Martha should pain and Sheldon should wallpaper