Reference no: EM131391834
Walter has reached a crossroads in his life. He is trying to decide whether to change careers. Currently Walter teaches chemistry but is considering entering a more lucrative line of work selling homemade pharmaceuticals. Walter can either teach six classes very well or produce 12 grams of his new drugs in a day. Interestingly Walter’s friend Jesse is in a similar predicament. Jesse can teach 3 classes very well or produce 2 grams of drugs during a day.
Walter’s opportunity cost of teaching one class: ___________________________
(yes you can have fractional grams of drugs):
Jesse’s opportunity cost of teaching one class: ___________________________
(yes you can have fractional grams of drugs):
Walter’s opportunity cost of making one gram of his drug: ___________________________
(yes you can have fractional numbers of classes):
Jesse’s opportunity cost of making one gram of his drug: ___________________________
(yes you can have fractional numbers of classes):
Who has an absolute advantage in teaching classes? ________________________
Who has the comparative advantage in teaching classes? _____________________
Who has the comparative advantage in making drugs? _____________________
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