Conan O'Brien hosts the Conan show and Andy Richter, his sidekick, writes for it. Conan needs 4 hours to rehearse and host a good show. It takes Andy 10 hours to do the same. Conan writes one usable joke in an hour, but Andy needs 2 hours to do the same. If each party produces according to his comparative advantage:
A) Andy will host and Conan will write.
B) Andy will host and Andy will write.
C) Conan will host and Conan will write.
D) Conan will host and Andy will write.

Question

Quizplus · Accepted Answer

Comparative advantage refers to the ability of a party to produce a good or service at a lower opportunity cost than another party. In this scenario, Conan has a lower opportunity cost in writing jokes while Andy has a lower opportunity cost in rehearsing/hosting.

Conan's opportunity cost of hosting the show is 4 hours, while Andy's opportunity cost is 10 hours. Thus, Andy should be the one to rehearse and host the show.

Conan's opportunity cost of writing a joke is 1 hour, while Andy's opportunity cost is 2 hours. Thus, Conan should be the one to write jokes.

Therefore, the best choice is for Conan to host and for Andy to write, which is option D.

Conan O'Brien Hosts the Conan Show and Andy Richter, His