Microeconomics homework help...please!!!?

Question

Scenario: Alex and Brad work at a baseball manufacturing plant. Alex can produce either 10 baseballs or 4 softballs in an hour. Brad can produce either 8 baseballs or 2 softballs in an hour.

Q's:

1. The opportunity cost for Brad to produce 1 softball is?

2.The opportunity cost for Alex to produce 1 baseball is?

And,

3. Brad has a comparative advantage over Alan in the production of?

And can you PLEASE tell me how to do it. I really wish I knew how to figure it out but I just dont know how!!!

Thanks

Answer 1

Alex's Utility per hour is:

10 baseballs or 4 softballs

1/2 hr is:

5 baseballs or 2 softballs

Brad's production per hour:

8 baseballs or 2 softballs

1/2 hour is:

4 baseballs or 1 softball

Answers:

1. 4 baseballs;  8/2 = 4

2. .4 softballs; 4/10 = .4

3. Neither, because Brad isn't beating Alex in production of anything. Alex is BETTER at making BOTH softballs AND baseballs so he has NO comparative advantage.

Hope this helps you!!

-Jerry, University of South Florida, Economics Major

Answer 2

1.1/4 base ball

2. 2/5 softball

                                           [OPPURTUNITY COST OF ONE GOOD IN TERM OF OTHER(comparitive cost then) IS SIMPLY THE AMOUNT OF ONE GOODS THAT MUST BE FOREGONE TO GET ANOTHER]

now back to ur question3. baseballs r cheaper comparitively to softballs, as u can see frm data just find opp cost of same item for both for other it'd b reverse and even the direction of trade......................................