Suppose that you and your roommate Alex have to clean your dorm room for parentsâ weekend. You are both slobs and have been living in the room for months so it is a mess. Working alone, it would take either of you two days to clean the apartment. Working together, you could both clean the apartment in one day. You are able to earn $50.00 a day working at the dining hall. Alex is able to earn $100 per day working as a bartender at a local watering hole.
a. What is your opportunity cost of cleaning the room?
b. What is Alexâs opportunity cost of cleaning the room?
c. According to the principle of comparative advantage, who should clean the room?
Why?
d. What is an arrangement that would make each of you better off? (How much could one of you pay the other to clean the apartment and both be better off?)
Suppose that you and your roommate Alex have to clean your dorm room for parentsâ weekend. You are both slobs and have been living in the room for months so it is a mess. Working alone, it would take either of you two days to clean the apartment. Working together, you could both clean the apartment in one day. You are able to earn $50.00 a day working at the dining hall. Alex is able to earn $100 per day working as a bartender at a local watering hole.
a. What is your opportunity cost of cleaning the room?
b. What is Alexâs opportunity cost of cleaning the room?
c. According to the principle of comparative advantage, who should clean the room?
Why?
d. What is an arrangement that would make each of you better off? (How much could one of you pay the other to clean the apartment and both be better off?)
