Question

Question 4 You and your friend are both volunteers at a cat rescue. The shelter supervisor asks the two of you to clean out kennels and haul bags of cat food from the donation area to storage You know from your last time volunteering that you can clean out 10 kennels in an hour or move 5 bags of dog food. Your friend can clean out 6 kennels in an hour or move 6 bags of dog food. Who has a comparative advantage in doing each task? TTT T Paragraph Arial 3(126) *DOQOFTEST' T. .. E.E. T. - - Path:p

Answer 1

Ans) Comparative advantage is when one can do the task at less opportunity cost.

	You	Friend
Clean kennel	10	6
Move bags	5	6

For you÷

Opportunity cost of cleaning = moving bags sacrificed ÷ cleaning kennel gained = 5÷10 = 0.5

Opportunity cost of moving bags = cleaning kennel sacrificed ÷ moving bags gained = 10÷5 = 2

For friend ÷

Opportunity cost of cleaning = moving bag sacrificed ÷ cleaning gained = 6÷6 = 1

Opportunity cost of moving bags = cleaning sacrificed ÷ moving bags = 6÷6 = 1

Now, since you have less opportunity cost of cleaning kennel, you have comparative advantage in it.

Since, you friend has less opportunity cost in moving bags, he has comparative advantage in it.