Lou and Alex live together and share household chores. They like to cook some meals ahead of time and eat leftovers. The table below shows the number of rooms they can each clean and the number of meals they can each cook in an hour. $$\begin{array} { | l | c | c | }
\hline & \begin{array} { c }
\text { Rooms Cleaned } \
\text { Per Hour }
\end{array} & \begin{array} { c }
\text { Meals Cooked } \
\text { Per Hour }
\end{array} \
\hline \text { Lou } & 5 & 4 \
\hline \text { Alex } & 3 & 3 \
\hline
\end{array}$$ Which of the following is true?

Question

Lou and Alex live together and share household chores. They like to cook some meals ahead of time and eat leftovers. The table below shows the number of rooms they can each clean and the number of meals they can each cook in an hour. $$\begin{array} { | l | c | c | } 
\hline & \begin{array} { c } 
\text { Rooms Cleaned } \
\text { Per Hour }
\end{array} & \begin{array} { c } 
\text { Meals Cooked } \
\text { Per Hour }
\end{array} \
\hline \text { Lou } & 5 & 4 \
\hline \text { Alex } & 3 & 3 \
\hline
\end{array}$$ Which of the following is true?

Quizplus · Accepted Answer

To determine absolute advantage, we look at who can produce more of a good or service in the same amount of time. From the table, Lou can clean 5 rooms or cook 4 meals in an hour while Alex can clean 3 rooms or cook 3 meals in an hour. Therefore, Lou has an absolute advantage in both tasks.

To determine comparative advantage, we need to calculate the opportunity cost of each task for both individuals. The opportunity cost of cleaning a room for Lou is 4/5 or 0.8 meals per hour while for Alex it is 3/3 or 1 meal per hour. The opportunity cost of cooking a meal for Lou is 5/4 or 1.25 rooms per hour while for Alex it is 3/3 or 1 room per hour. Therefore, Lou has a comparative advantage in cleaning while Alex has a comparative advantage in cooking.

Option A is incorrect because Lou only has a comparative advantage in cleaning, not both tasks. Option B is incorrect because Alex has a comparative disadvantage in cleaning, not an advantage. Option D is incorrect because Alex has an absolute disadvantage in both tasks.

Lou and Alex Live Together and Share Household Chores Which of the Following Is True? A)Lou Has Both an Like

Lou and Alex Live Together and Share Household Chores Which of the Following Is True?
A)Lou Has Both an Like