Respuesta :
Answer:
(a) Randy's opportunity cost of mowing lawns = [tex]\frac{24}{8}[/tex]
= 3
Therefore, 3 trees have to be foregone for mowing 1 lawn.
Randy's opportunity cost of pruning trees = [tex]\frac{8}{24}[/tex]
= 0.33
Therefore, 0.33 lawns have to be foregone for pruning 1 tree.
(b) Frank's opportunity cost of mowing lawns = [tex]\frac{12}{6}[/tex]
= 2
Therefore, 2 trees have to be foregone for mowing 1 lawn.
Frank's opportunity cost of pruning trees = [tex]\frac{6}{12}[/tex]
= 0.50
Therefore, 0.50 lawns have to be foregone for pruning 1 tree.
(c) Frank has a comparative advantage in mowing lawns and Randy has a comparative advantage in pruning trees.
(d) Randy has a absolute advantage in both, mowing lawns and pruning trees.
