Absolute versus Comparative Advantage

Two ways to be the best

Computing opportunity costs

Everyone has a comparative advantage

Why the distinction matters

Ana produces 6 bushels of wheat or 3 bolts of cloth per day, and Ben produces 1 bushel of wheat or 2 bolts of cloth per day. Who has the comparative advantage in cloth, and at what opportunity cost?

A lawyer writes briefs worth 400 dollars an hour and also types faster than her assistant, whose work is worth 25 dollars an hour. Why should the lawyer not type her own briefs even though she is absolutely better at typing?

In one hour Maya bakes 12 loaves of bread or paints 6 mugs, and in the same hour Oskar bakes 4 loaves or paints 4 mugs. Compute Maya's opportunity cost of one loaf of bread in mugs, as a fraction, and write it as a decimal number.

Rio can make 5 chairs or 10 lamps per hour, and Zed can make 4 chairs or 4 lamps per hour. Who has the comparative advantage in chairs?

A surgeon types twice as fast as her assistant. Why should she still dictate and let the assistant type?

In one hour Oskar bakes 4 loaves of bread or paints 4 mugs. Compute his opportunity cost of one painted mug in loaves of bread, and write the number.