**Opportunity Cost and Comparative Advantage Analysis**Isabella and Antonio are auto mechanics. Isabella takes 4 hours to replace a clutch and 2 hours to replace a set of brakes. Antonio takes 6 hours to replace a clutch and 2 hours to replace a set of brakes. **Instructions:** Enter your responses rounded to two decimal places.1. **Opportunity Cost Calculations:** - The opportunity cost of replacing a set of brakes for Isabella is [____]. - The opportunity cost of replacing a set of brakes for Antonio is [____].2. **Comparative and Absolute Advantage Assessment:** - [Antonio / Isabella] has a comparative advantage in brake replacement. - [Antonio / Isabella] has a comparative advantage in clutch replacement. - [Neither / Antonio / Isabella] has an absolute advantage in brake replacement. - [Neither / Antonio / Isabella] has an absolute advantage in clutch replacement.This exercise aims to understand the concepts of opportunity cost, comparative advantage, and absolute advantage within the context of labor productivity in auto mechanics.

Opportunity cost is the cost of producing 1 good in terms of other. A country has Comparative…

Isabella and Antonio are auto mechanics. Isabella takes 4 hours to replace a clutch and 2 hours to replace a set of brakes. Antonio takes 6 hours to replace a clutch and 2 hours to replace a set of brakes. State whether anyone has an absolute advantage at either task and, for each task, identify who has a comparative advantage. Instructions: Enter your responses rounded to two decimal places. The opportunity cost of replacing a set of brakes for Isabella is The opportunity cost of replacing a set of brakes for Antonio is Antonia Isabella Neither Isabella has a comparative advantage in brake replacement. has a comparative advantage in clutch replacement. V has an absolute advantage in brake replacement. V has an absolute advantage in clutch replacement.

Isabella and Antonio are auto mechanics. Isabella takes 4 hours to replace a clutch and 2 hours to replace a set of brakes. Antonio takes 6 hours to replace a clutch and 2 hours to replace a set of brakes. State whether anyone has an absolute advantage at either task and, for each task, identify who has a comparative advantage. Instructions: Enter your responses rounded to two decimal places. The opportunity cost of replacing a set of brakes for Isabella is The opportunity cost of replacing a set of brakes for Antonio is Antonia Isabella Neither Isabella has a comparative advantage in brake replacement. has a comparative advantage in clutch replacement. V has an absolute advantage in brake replacement. V has an absolute advantage in clutch replacement.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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