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 - Quick Check Multiple Choice - Page 59: 1

Answer

d Ron in washing, neither in mowing This is because both of them can mow only 1 lawn in one hour's time, and Ron can wash 3 cars in an hour's time while David can only wash 2 in an hour's time, hence option 'd' is correct.

Work Step by Step

Since David can mow a lawn and only give up washing 2 cars, David has an absolute advantage in mowing since Ron would have to give up washing 3 cars. Since Ron can wash 3 cars and only give up mowing a lawn, Ron has an absolute advantage in washing since David could only wash 2 cars with giving up mowing a lawn.
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