Mark is a computer company executive, and earns $200 per hour managing the company and promoting its products. His daughter Regan is a high school student, and earns $6 per hour helping her grandmother on the farm. Mark's computer is broken. He can repair it himself in one hour. Regan can repair it in 10 hours. Mark has a comparative advantage repairing the computer.

Question

Quizplus · Accepted Answer

Mark does not have a comparative advantage because his opportunity cost of repairing the computer is higher than Regan's. Mark loses $200 by spending an hour repairing the computer, while Regan loses $60 by spending 10 hours on the repair.

Mark Is a Computer Company Executive, and Earns $200 Per