Waddayaknow-key - Waddayaknow(extra credit Name_Key 1...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Waddayaknow (extra credit) August 31, 2006 Name _____Key__________________ 1) Consider the information below for the amount of two different tasks that Chris and A.J. could complete working an 8 hour day, spending all that time doing only one of the tasks. Making earrings Sewing shirts Chris 10 pairs 2 shirts A.J. 6 pairs 1 shirt ________Chris_______________ has an absolute advantage in earrings. ________Chris_______________ has an absolute advantage in shirts. _______A.J_____________________ has a comparative advantage in earrings. _______Chris_______________________has a comparative advantage in shirts. Row Method To make a pair of earrings, Chris gives up 2/10 or .2 of a shirt. To make a pair of earrings, A.J. gives up 1/6 or .167 of a shirt. \ A.J. has the lower opportunity cost to make earrings. To make a shirt, Chris gives up 5 pairs of earrings. To make a shirt, A.J. gives up 6 pairs of earrings. Chris has the lower opportunity cost to make a shirt.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/15/2011 for the course AGEC 7100 taught by Professor Duffy,p during the Fall '08 term at Auburn University.

Page1 / 2

Waddayaknow-key - Waddayaknow(extra credit Name_Key 1...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online