Micreconomics Homework Help on Concept #1 opportunity costs?

Question

Consider that you are a manager in charge of transhipment of packages at one of the docks at a local UPS plant. As the manager, you have two tasks that need to be done: loading and sorting. To accomplish these 2 tasks; you have 7 workers that show up between 11pm and 2am and need to finish the task by 7am so the drivers can take the parcels out for delivery.

You are very experienced and you know the value of your workers:

Blaine (works for 8 hours): load 100 pieces/hour; sort 50 pieces/hour

Nomad (works for 6 hours): load 50 pieces/hour; sort 50 pieces/hour

Astra (works for 7 hours): load 75 pieces/hour; sort 75 pieces/hour

Oz (works for 8 hours): load 100 pieces/hour; sort 150 pieces/hour

Rastor (works for 6 hours): load 50 pieces/hour; sort 25 pieces/hour

Sky (works for 8 hours): load 100 pieces/hour; sort 150 pieces/hour

Emma (works for 8 hours): load 100 pieces/hour; sort 100 pieces/hour

2.1. Who has the comparative advantage in loading? (Note: there may be more than 1 correct answer - you just need to choose 1 person that shares the comparative advantage in loading.)

A. Blaine

B. Nomad

C. Astra

D. Oz

E. Rastor

F. Sky

G. Emma

Answer 1

Just divide load by sort, the worker with the highest ratio has the biggest comparative advantage:

A. Blaine: 2

B. Nomad: 1

C. Astra: 1

D. Oz: 0.67

E. Rastor: 2

F. Sky: 0.67

G. Emma: 1

Blaine and Rastor both load twice as fast as they sort, so they both have a comparative advantage loading. Notice that Blaine has an absolute advantage over Rastor since he works twice as fast as Rastor.