Mark is a computer company executive, and earns $500 per hour managing the company and promoting its products.His daughter Regan is a high school student, and earns $6 per hour helping her grandmother on the farm.Mark's computer is broken.He can repair it himself in one hour.Regan can repair it in 10 hours.Mark has a comparative advantage in repairing the computer.

Question

Quizplus · Accepted Answer

Regan has a lower opportunity cost in repairing the computer, as her time is valued at $6 per hour compared to Mark's $500 per hour. Therefore, she has the comparative advantage in repairing the computer.

Mark Is a Computer Company Executive, and Earns $500 Per