Question

Mickey can steal 6 packs of cheese or 12 packs of olives in 60 minutes

Minney can steal 3 packs of cheese or 4 packs of olives in 60 minutes

a.)  When Mickey steals one pack of cheese, ______ pack of olives is/are lost (that is, not stolen) Please enter a whole number, with no decimal point

b.) When Minney steals one pack of cheese, ____ packs of olives is/are lost (that is, NOT stolen) Please enter a whole number, with no decimal point

c.) Based on your above answers, who has lower opportunity costs in stealing cheese?
In other words, is, who loses fewer packs of olives while stealing cheese?
a. Mickey

b. Both lose same amount of olive packs

c. Minney

d. Not enough info

d.) Based on your above answers, who has comparative advantage in stealing cheese?

a. Nobody - both are same

b. Mickey

c. Minney

e.) How much time does it take Mickey to steal one pack of cheese? _____ minutes
Note: Time is a resource / input. Please enter a whole number, with no decimal point.

Answer 1

Mickey can steal 6 packs of cheese or 12 packs of olives in 60 minutes. This implies that the opportunity cost of 1 pack of cheese is 2 packs of olives and the opportunity cost of 1 pack of olive is 0.5 packs of cheese.

Minney can steal 3 packs of cheese or 4 packs of olives in 60 minutes. This implies that the opportunity cost of 1 pack of cheese is 4/3 = 1.33 packs of olives and the opportunity cost of 1 pack of olive is 3/4 = 0.75 packs of cheese.

a.)  When Mickey steals one pack of cheese, 2 pack of olives is/are lost (that is, not stolen)

b.) When Minney steals one pack of cheese, 1 packs of olives is/are lost (that is, NOT stolen)

c.) Minney has a lower opportunity costs in stealing cheese which is 1.33 packs of olives compared to that of Mickey who has the same opportunity cost at 2 packs of olives. Minney loses fewer packs of olives while stealing cheese

d.) Minney has comparative advantage in stealing cheese because of lower opportunity cost.

e.) It is 60/6 = 10 minutes