Suppose that, on a particular Saturday, Mark Zuckerberg and Bill Gates can either plant trees or spread mulch in their gardens. Their maximum output per day is listed in the following table, along with spaces where you can calculate the opportunity cost. Who has an absolute advantage in spreading mulch? $$\begin{array} { | l | l | l | l | l | }
\hline & \begin{array} { l }
\text { Trees } \
\text { Phanted }
\end{array} & \begin{array} { l }
\text { Opportunity } \
\text { Cost of 1 } \
\text { Tree }
\end{array} & \begin{array} { l }
\text { Amount } \
\text { of Mulch } \
\text { Spread } \
\text { (incubic } \
\text { yards) }
\end{array} & \begin{array} { l }
\text { Opportumity } \
\text { Cost of } \
\text { Spreading 1 } \
\text { Cubic Yard } \
\text { of Mulch }
\end{array} \
\hline \text { Zuckerberg } & 20 & & 30 & \
\hline \text { Gates } & 15 & & 30 & \
\hline
\end{array}$$
A) Zuckerberg has the advantage because he gives up fewer trees each time he spreads 1 cubic yard of mulch.
B) Gates has the advantage because he gives up fewer trees each time he spreads 1 cubic yard of mulch.
C) Zuckerberg has the advantage because he gives up more trees each time he spreads 1 cubic yard of mulch.
D) Neither has an absolute advantage in spreading mulch.
E) Both parties have an absolute advantage in planting trees.

Question

Suppose that, on a particular Saturday, Mark Zuckerberg and Bill Gates can either plant trees or spread mulch in their gardens. Their maximum output per day is listed in the following table, along with spaces where you can calculate the opportunity cost. Who has an absolute advantage in spreading mulch? $$\begin{array} { | l | l | l | l | l | } 
\hline & \begin{array} { l } 
\text { Trees } \
\text { Phanted }
\end{array} & \begin{array} { l } 
\text { Opportunity } \
\text { Cost of 1 } \
\text { Tree }
\end{array} & \begin{array} { l } 
\text { Amount } \
\text { of Mulch } \
\text { Spread } \
\text { (incubic } \
\text { yards) }
\end{array} & \begin{array} { l } 
\text { Opportumity } \
\text { Cost of } \
\text { Spreading 1 } \
\text { Cubic Yard } \
\text { of Mulch }
\end{array} \
\hline \text { Zuckerberg } & 20 & & 30 & \
\hline \text { Gates } & 15 & & 30 & \
\hline
\end{array}$$
A) Zuckerberg has the advantage because he gives up fewer trees each time he spreads 1 cubic yard of mulch.
B) Gates has the advantage because he gives up fewer trees each time he spreads 1 cubic yard of mulch.
C) Zuckerberg has the advantage because he gives up more trees each time he spreads 1 cubic yard of mulch.
D) Neither has an absolute advantage in spreading mulch.
E) Both parties have an absolute advantage in planting trees.

Quizplus · Accepted Answer

Both Zuckerberg and Gates can spread the same amount of mulch (30 cubic yards), so neither has an absolute advantage in spreading mulch. Absolute advantage is determined by who can produce more of a good, not by opportunity cost.

Suppose That, on a Particular Saturday, Mark Zuckerberg and Bill