Mark can cook dinner in 30 minutes and wash the laundry in 20 minutes while his housemate John can cook dinner in 15 minutes and wash the laundry in 30 minutes.How should they allocate their work?
A)Mark should cook dinner based on his comparative advantage
B)John should cook dinner based on his absolute advantage
C)John should cook dinner based on his comparative advantage
D)Mark should do the laundry based on his absolute advantage

Question

Quizplus · Accepted Answer

Comparative advantage refers to the ability to produce a good at a lower opportunity cost than another person. In this case, Mark has a comparative advantage in washing laundry because he can wash laundry in 20 minutes while it takes John 30 minutes to do the same job. On the other hand, John has a comparative advantage in cooking dinner because he can cook dinner in 15 minutes while Mark takes 30 minutes to do the same job. Therefore, John should cook dinner and Mark should wash the laundry to maximize their overall productivity.

Mark Can Cook Dinner in 30 Minutes and Wash the Laundry