Principles of Microeconomics, 7th Edition

Published by South-Western College
ISBN 10: 128516590X
ISBN 13: 978-1-28516-590-5

Chapter 3 - Part I - Interdependence and the Gains from Trade - Questions for Review: 1

Answer

Ron has the absolute advantage because he can wash more cars per hour. Neither have the absolute advantage in lawn mowing because Ron and David mow the same number of lawns per hour.

Work Step by Step

Ron cars washed per hour: 3 Ron lawns mowed per hour: 1 David cars washed per hour: 2 David lawns mowed per hour: 1 Cars Washed (Ron) 3$\gt$2 (David) Lawns Mowed (Ron) 1=1 (David)
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