B1 and B2 are both members of the pit crew for a famous team in Formula One autoracing. B1 takes 4 seconds to refuel the car and 2 seconds to replace a tire. B2 takes 6 seconds to refuel the car and 2 seconds to replace a tire. a) Create an opportunity costs table. (Remember: 1 output/resource to get the OC). Do not make a big table. b) Can B1 and B2 benefit for specialization and trade? Explain the basis of specialization and trade. Maximum of 2 sentences. c) Who has an absolute advantage in the refuelling the car and replacing a tire? Based from the given, explain briefly. d) Who has a comparative advantage in the refuelling the car and replacing a tire? Based from the opportunity cost table, explain briefly. e) If both members decided to trade with each other in terms of their roles, which role will each one give the other? Based from the opportunity cost table, explain briefly.

B1 and B2 are both members of the pit crew for a famous team in Formula One autoracing. B1 takes 4 seconds to refuel the car and 2 seconds to replace a tire. B2 takes 6 seconds to refuel the car and 2 seconds to replace a tire. a) Create an opportunity costs table. (Remember: 1 output/resource to get the OC). Do not make a big table. b) Can B1 and B2 benefit for specialization and trade? Explain the basis of specialization and trade. Maximum of 2 sentences. c) Who has an absolute advantage in the refuelling the car and replacing a tire? Based from the given, explain briefly. d) Who has a comparative advantage in the refuelling the car and replacing a tire? Based from the opportunity cost table, explain briefly. e) If both members decided to trade with each other in terms of their roles, which role will each one give the other? Based from the opportunity cost table, explain briefly.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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