Molly is Person A; John is person B 2 people from the same house do two things: they give rides and deliver meals Molly can provide 4 taxi rides or 2 meal deliveries in an hour. John can provide 5 taxi rides or 4 meal deliveries in an hour. Who has the absolute advantage in the provision of taxi rides? Who has the comparative advantage in the provision of taxi rides?
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Molly is Person A; John is person B
2 people from the same house do two things: they give rides and deliver meals
Molly can provide 4 taxi rides or 2 meal deliveries in an hour. John can provide 5 taxi rides or 4 meal deliveries in an hour.
Who has the
Absolute advantage: Person A Comparative advantage: Person A
Absolute advantage: Person B Comparative advantage: Person A
Absolute advantage: Person A Comparative advantage: Person B
Absolute advantage: Person B Comparative advantage: Person B
What is a price of taxi rides (in terms of meal deliveries) at which BOTH Molly and John will be better o" by specialization and trade?
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