Randy and Frank are both landscapers. Randy can mow 16 lawns per day or prune 12
ID: 1220257 • Letter: R
Question
Randy and Frank are both landscapers. Randy can mow 16 lawns per day or prune 12 trees. Frank can mow 10 lawns per day or prune 10 trees. What is each man’s opportunity cost of mowing lawns? Who has a comparative advantage in each task, and who, if anyone, has an absolute advantage at each task?
The opportunity cost of mowing lawns for Randy is ????? prunings.
The opportunity cost of mowing lawns for Frank is ?????? prunings.
(Click to select)NeitherFrankRandy has a comparative advantage in mowing lawns.
(Click to select)FrankNeitherRandy has a comparative advantage in pruning trees.
(Click to select)NeitherRandyFrank has an absolute advantage in mowing lawns.
(Click to select)NeitherRandyFrank has an absolute advantage in pruning trees.
Explanation / Answer
The opportunity cost of mowing lawns for Randy is 12/16 = 0.75 prunings.
The opportunity cost of mowing lawns for Frank is 10/10 = 1 pruning.
Randy has a comparative advantage in mowing lawns. (Reason: lower opportunity cost)
Frank has a comparative advantage in pruning trees. (Reason: lower opportunity cost)
Randy has an absolute advantage in mowing lawns. (Reason: total lawns mowed is high)
Randy has an absolute advantage in pruning trees. (Reason: total pruning is high)
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