Market Application

Market Application

Question Description

I’m working on a economics question and need an explanation and answer to help me learn.

1. Given Ted can wax 4 cars per day or wash 2 cars per day and Tom can wax 3 cars per day or wash 1 car per day.  

What is each man’s opportunity cost of waxing ONE car?  

Who has an absolute advantage of waxing cars?  

Who has a comparative advantage of waxing cars?

2. Explain – using the key concepts discussed in the lectures – why it costs $1,500 and 6 months to make a sandwich from scratch (article

Why is this approach to production not a good use of resources?