Question:

How do you calculate comparative advantange and oppurtunity cost in economics ?

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i'm in ap macroeconomics and i can't figure these questions out, it's confusing?

we have a chart that says:

MIKE DEBBIE

vacuum a room: 60 minutes 45 minutes

wash a load of dishes: 30 minutes 45 minutes

Who has the comparative advantage in vacuuming?

Who has the comparative advantage in washing dishes?

2ND PART:

What is mikes oppurtunity cost of vaccuuming in terms of washing dishes?

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  1. Mike would be indifferent between vacuuming a room (60 minutes) or washing two loads of dishes (2 x 30 minutes) - both take him one hour. In contrast, Debbie needs the same amount of time for both tasks.

    Therefore, Debbie has a comparative advantage in vacuuming (she only needs 45 minutes), while Mike has a comparative advantage in washing dishes.

    Finally, Mike's opportunity cost of vacuuming is washing two loads of dishes.

    P.S.: Assume that both Mike and Debbie need to each wash one load of dishes and vacuum one room. Both would need 90 minutes to do their choirs: Mike would spend 60 minutes vacuuming and 30 minutes washing dishes, while Debbie would spend 45 minutes on each task. If Debbie vacuums two rooms (2 x 45 minutes) and Mike washes two loads of dishes (2 x 30), Mike would spend 30 minutes less working (and Debbie would be indifferent). Due to their comparative advantages, there are gains from trade.

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