Beth can paint 2 T-shirts in an hour while her brother can paint 1 T-shirt in an hour. However, her brother can paint 2 walls in an hour while she can paint only one. Who should specialize in which activity and why?
What will be an ideal response?
The opportunity cost of painting a T-shirt for Beth is 1/2 a wall and the opportunity cost of painting a T-shirt for her brother is 2/1 or 2 walls. Therefore, Beth has a comparative advantage in painting T-shirts and should specialize in it. The opportunity cost of painting a wall for Beth is and the opportunity cost of painting a wall for her brother is 1/2 a T-shirt. Therefore, her brother has a comparative advantage in painting walls and should specialize in painting walls.
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What will be an ideal response?