chapter 3
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If Iowa's opportunity cost of corn is lower than Oklahoma's opportunity cost of corn, then
Iowa has a comparative advantage in the production of corn
Cathy is a tax accountant. She receievs $100 an hour doing tax returns. She can type 10,000 characters per hour. She hires an assistant that types 2500 an hour.
Cathy should hire the assistant as long as she pays the assistant less than $100 an hour
Suppose Jim and Tom can both produce baseball bats and hockey sticks. What isn't possible?
Jim has a comparative advantage in the production of baseball hats and in the production of hockey sticks
comparative advantage is related closely to...
opportunity cost
