Look at F where it says Liz has comparative advantage. Why is it that she has comparative advantage over mike in cleaning windows when mike has comparative advantage in picking up leaves? What’s the difference? %246.7.8.ED.E GHKLenterpauseBM.1 shiftaltctrialtUSE YOUR SMARTPHONE FORReviews Videos - FeaturesSpecs Support(intelInsideSCANStandard datarates may apoly.Total asseStochoStockholdEcon 205 Homework 2Suggested SolutionsChapters 3, 4: Trade, markets, demandRead the section of Chapter 3 on absolute advantage and comparative advantage, andanswer question 1.1. Mike and Liz are siblings, and must complete two chores: picking up leaves andcleaning the windows. Mike can fill 6 bags of leaves in an hour, while Liz can fill 4bags of in an hour. Mike can clean 8 windows in an hour, while Liz can clean 6windows in an hour.a.What is absolute advantage? HRIFTBOOKS610Econ 205 Homework 2Suggested SolutionsChapters 3, 4: Trade, markets, demandanswer question 1.windows in an hour.What is absolute advantage?equivalently more bags or windows per hour.Mikeb.Who has an absolute advantage in picking up leaves?Mikec.Who has an absolute advantage in cleaning windows?d.What is comparative advantage?Who has a comparative advantage in picking ▪p leaves?е.Mikef.Who has a comparative advantage in cleaning windows?Lizg. If they both spend half an hour bagging leaves and half an hour cleaningwindows, could they make a trade with each other and both finish in less thanan hour? Explain.Yes, Liz has a comparative advantage in windows (opp. cost = 4 bags/6 windows=.67 bags per window compared to Mike .75 bags per window) and Mike has acomparative advantage in leaves (opp. cost = 1.33 window per bag compared to 1.5vindows per bag for Liz). So it is possible for them to trade at between theirpportunity costs and complete the same number of windows and bags of leaves inder an hour. For example, if Liz takes over 1.4 windows from Mike for each bageaves Mike takes over from Liz.

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Description: Look at F where it says Liz has comparative advantage. Why is it that she has comparative advantage over mike in cleaning windows when mike has comparative advantage in picking up leaves? What’s the difference? %246.7.8.ED.E GHKLenterpauseBM.1 shifta

Comparative advantage is the ability to produce goods and services at a lesser opportunity cost when…

Answered: Look at F where it says Liz has…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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Look at F where it says Liz has comparative advantage. Why is it that she has comparative advantage over mike in cleaning windows when mike has comparative advantage in picking up leaves? What’s the difference?

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7.
8.
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D.
E G
H
K
L
enter
pause
B
M.
1 shift
alt
ctri
alt
USE YOUR SMARTPHONE FOR
Reviews Videos - Features
Specs Support
(intel
Inside
SCAN
Standard datarates may apoly.
Total asse
Stocho
Stockhold
Econ 205 Homework 2
Suggested Solutions
Chapters 3, 4: Trade, markets, demand
Read the section of Chapter 3 on absolute advantage and comparative advantage, and
answer question 1.
1. Mike and Liz are siblings, and must complete two chores: picking up leaves and
cleaning the windows. Mike can fill 6 bags of leaves in an hour, while Liz can fill 4
bags of in an hour. Mike can clean 8 windows in an hour, while Liz can clean 6
windows in an hour.
a.
What is absolute advantage?

HRIFTBOOKS
610
Econ 205 Homework 2
Suggested Solutions
Chapters 3, 4: Trade, markets, demand
answer question 1.
windows in an hour.
What is absolute advantage?
equivalently more bags or windows per hour.
Mike
b.
Who has an absolute advantage in picking up leaves?
Mike
c.
Who has an absolute advantage in cleaning windows?
d.
What is comparative advantage?
Who has a comparative advantage in picking ▪p leaves?
е.
Mike
f.
Who has a comparative advantage in cleaning windows?
Liz
g. If they both spend half an hour bagging leaves and half an hour cleaning
windows, could they make a trade with each other and both finish in less than
an hour? Explain.
Yes, Liz has a comparative advantage in windows (opp. cost = 4 bags/6 windows
=.67 bags per window compared to Mike .75 bags per window) and Mike has a
comparative advantage in leaves (opp. cost = 1.33 window per bag compared to 1.5
vindows per bag for Liz). So it is possible for them to trade at between their
pportunity costs and complete the same number of windows and bags of leaves in
der an hour. For example, if Liz takes over 1.4 windows from Mike for each bag
eaves Mike takes over from Liz.

Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

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