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Comparative Advantage Review

If you recall, it takes Jack 1 hour to clean a carpet and 4 hours to write a book report. Here are the combinations of what he can get done in eight hours.

Jack's Work Output Plans for 8 hours
  A B C D E F G H I
Carpets Cleaned 8 7 6 5 4 3 2 1 0
Book Reports Written 0 0.25 0.5 0.75 1 1.25 1.5 1.75 2

Alternatively, it takes Andy 2 hours to write a book report and 4 hours to clean a carpet. Here are the combinations of what he can get done in eight hours.

Andy's Work Output Plans for 8 hours
  A B C D E F G H I
Carpets Cleaned 2 1.75 1.5 1.25 1 0.75 0.5 0.25 0
Book Reports Written 0 0.5 1 1.5 2 2.5 3 3.5 4

In order to get the most amount of work done, Jack and Andy need to specialize in the task in which they have the greater comparative advantage (or the lower opportunity cost). Review the two charts above. Assuming they specialize in the task in which they have the lowest opportunity cost, based on an 8-hour workday, which plan should both Jack and Andy follow in order to maximize their output?

Which plan should Jack follow in order to maximize their combined output?
 

Work Plan:

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Which plan should Andy follow in order to maximize their combined output?
 

Work Plan:

Check Answer

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