Look at the table below and compare Jack's opportunity cost of car repair to Andy's.
Opportunity Cost of 1 Car Repair | ||
---|---|---|
![]() |
Jack | 1 shoveled driveway |
![]() |
Andy | 2 shoveled driveways |
A. Jack |
|
B. Andy |
Let's try another. Remember, with comparative advantage, we are comparing the opportunity cost of two entities. Whoever gives up less has the comparative advantage.
This time, let's consider the reverse scenario by referring to the table below. For every two driveways Jack shovels, he gives up two car repairs. For every two driveways Andy shovels, he gives up one car repair.
Opportunity Cost of 2 Shoveled Driveways | ||
---|---|---|
![]() |
Jack | 2 car repairs |
![]() |
Andy | 1 car repair |
A. Jack |
|
B. Andy |