Question

Suppose Klay Thompson and Draymond Green share an apartment. It takes Klay 15 minutes to clean the bathroom and 10 minutes to clean the kitchen. It takes Draymond 30 minutes to clean the bathroom and 25 minutes to clean the kitchen. This implies that ________________ in cleaning the bathroom and ______________________ in cleaning the kitchen.

Answer 1

Answer: c. Klay has an absolute advantage; Draymond has a comparative advantage

Explanation:

When a person is said to have absolute advantage in doing something over another, it means that they take less time and resources to accomplish the same task. Klay takes a smaller amount of time to clean the bathroom so has absolute advantage there.

A person with comparative advantage is one who takes a lesser opportunity cost in doing something than the the other.

Klay opportunity cost of cleaning kitchen = time to clean bathroom / time to clean kitchen

= 15 / 10

= 1.5 minutes

Draymond opportunity cost = 30 / 25

= 1.2 minutes

Draymond therefore has a comparative advantage in cleaning the kitchen.