Question

It takes Suzi 6 hours to sew a shirt and 4 hours to bake a cake. Anna can sew a shirt in 3 hours and bake a cake in 1 hour. If Anna and Suzi decide to specialize and trade, who should make shirts?

Answer 1

Answer:

Suzi

Explanation:

Comparative advantage is the relative edge that a person has over another in the production of a product. They use less resources to produce the product than others.

When two parties corporate in production the good to produce can be shared base on who has comparative advantage or the person that loses less in a production process.

In the give instance

Suzi can produce a shirt in 6 hours while Anna produces it in 3 hours. Anna is twice as fast as Suzi.

Suzi can bake a cake in 4 hours while Anna can do so in 1 hour. So Anna is 4 times faster than Suzi in baking cakes.

It will be best for Suzi to make shirts since she is only twice as slow as Anna.

Anna will be better off baking cakes as she is four times as fast here.