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QUESTION

You and a friend have decided to work jointly on a major course project. Your friend is a less-than-ideal partner.

Your friend is a less-than-ideal partner. He can only outline 2 articles a day or type 10 pages a day. You on the other hand can either outline 6 articles per day or type 20 pages.

a. Who has the absolute advantage in outlining? How about in typing?

b. Show all the opportunity costs for you and your friend. Who has the comparative advantage in typing and who has the comparative advantage in outlining?

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