Use the following scenario to answer the next four questions:
Esther and Albert produce hamburgers and hot dogs. Esther can produce six hamburgers per hour or four hot dogs per hour. Albert can produce three hamburgers per hour or one hot dog per hour.
-Based on the scenario,Esther's opportunity cost of one hamburger is:

Question

Quizplus · Accepted Answer

Esther's opportunity cost of one hamburger is equal to the amount of hot dogs she could have produced instead. In this case, Esther could produce four hot dogs per hour, therefore her opportunity cost of one hamburger is 2/3 hot dog (4/6).

Answer: Produce hamburgers
 Esther can produce six hamburgers per hour, while Albert can only produce three. Therefore, Esther has a comparative advantage in producing hamburgers and should focus on producing them.

Answer: Produce hot dogs
 Albert can produce one hot dog per hour, while Esther can only produce four. Therefore, Albert has a comparative advantage in producing hot dogs and should focus on producing them.

Answer: They should specialize and trade
 Esther has a comparative advantage in producing hamburgers, while Albert has a comparative advantage in producing hot dogs. Therefore, they should specialize in producing what they are most efficient at and then trade with each other. This will result in a more efficient allocation of resources and higher overall productivity.

Use the Following Scenario to Answer the Next Four Questions