**Martha and Stewart's Productivity in Painting and Wallpapering**Martha and Stewart each allocate eight hours a day to wallpapering and painting. The table below shows their productivity:| | **Hours Needed to Do One Room** | **Rooms Finished in 40 Hours** ||-----------------------|-------------------------------|---------------------------------|| | **Paint** | **Wallpaper** | **Paint** | **Wallpaper** || **Martha** | 2 hours/room | 8 hours/room | 8/2 = 4 rooms | 8/8 = 1 room || **Stewart** | 4 hours/room | 10 hours/room | 8/4 = 2 rooms | 8/10 = 0.8 room |**Questions for Analysis:**1. **Who has the absolute advantage in painting? In wallpapering?** 2. **What are each person’s opportunity costs for painting? For wallpapering?** 3. **Which person has the comparative advantage in painting? In wallpapering? How do you know?**These questions help explore concepts of absolute and comparative advantage, encouraging deeper understanding of productivity and opportunity costs in economic terms.

Martha and Stewart are two individuals who utilize their 8 hours in painting and wallpapering.

Martha and Stewart each spend eight hours a day wallpapering and painting: Hours Needed to Do One Room Paint 2 hours/room 4 hours/room Wallpaper 8 hours/room 10 hours/room Rooms Finished in 40 Hours Paint 8/2=4 rooms 8/4=2 rooms Wallpaper 8/8=1 room 8/10=0.8 room Martha Stewart Who has the absolute advantage in painting? In wallpapering? What are each person's opportunity costs for painting? For wallpapering? Which person has the comparative advantage in painting? In wallpapering? How do you know?

Martha and Stewart each spend eight hours a day wallpapering and painting: Hours Needed to Do One Room Paint 2 hours/room 4 hours/room Wallpaper 8 hours/room 10 hours/room Rooms Finished in 40 Hours Paint 8/2=4 rooms 8/4=2 rooms Wallpaper 8/8=1 room 8/10=0.8 room Martha Stewart Who has the absolute advantage in painting? In wallpapering? What are each person's opportunity costs for painting? For wallpapering? Which person has the comparative advantage in painting? In wallpapering? How do you know?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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