Comparative Advantage Practice Problems – Remember to have the comparative advantage you must have the LOWEST OPPORTUNITY COST!
Tire Changes (per hour) 5
Oil Changes (per hour) 3
Who should do tire changes? Who should do oil changes?
Trains (per day) 4
Planes (per day) 2
Who should produce trains? Who should produce planes?
Wheat (bushels) 40
Corn (bushels) 40
Who should produce wheat? Who should produce corn?
Grapes (bushels) 1
Lumber (loads) 12
Who should produce grapes? Who should produce lumber?
What is different about this situation? What does this tell us about the potential for trade between Chip & Dale?