Rusty can edit 2 pages in one minute,and he can type 80 words in one minute.Emily can edit 1 page in one minute,and she can type 100 words in one minute.Rusty has an absolute advantage and a comparative advantage in editing,and Emily has an absolute advantage and a comparative advantage in typing.

Question

Quizplus · Accepted Answer

Rusty can edit more pages in a minute than Emily, giving him an absolute advantage in editing. Similarly, Emily can type more words in a minute than Rusty, giving her an absolute advantage in typing. Rusty also has a comparative advantage in editing because his opportunity cost of typing is higher than Emily's, and Emily has a comparative advantage in typing because her opportunity cost of editing is higher than Rusty's.

Rusty Can Edit 2 Pages in One Minute,and He Can