Chapter 15 Page 430, # 2. Bill can paint either two walls or one window frame in

Question

Chapter 15

Page 430, # 2. Bill can paint either two walls or one window frame in one hour. In the same time, Frank can paint either three walls or two window frames. To minimize the time spent painting, who should specialize in painting walls, and who should specialize in painting window frames?

To answer this question you must understand the concepts of Opportunity Costs and the definition of Comparative Advantage. This problem may seem silly and not make sense to you at first. Consider that all of us must understand what our comparative advantage is to make the most of our lives and our careers.

Explanation / Answer

Bill can paint either two walls or one window frame in one hour.

So, utilizing one hour, the opportunity cost of painting 1 wall is (1/2) 0.5 windows while the opportunity cost of painting 1 window is (2/1) 2 walls.

Frank can paint either three walls or two window frames in one hour.

So, utilizing one hour, the opportunity cost of painting 1 wall is (2/3) 0.67 windows while the opportunity cost of painting 1 window is (3/2) 1.5 walls.

Following is the required table -

It can be seen that Bill can paint wall at lower opportunity cost than Frank. So, Bill has comparative advantage in painting walls amd must specialize in painting walls.

On the other hand, Frank can paint 1 window at lower opportunity cost than Bill. So, Frank has comparative advantage in painting window frames and must specialize in painting window frames.

Thus, to minimize the time spent painting, Bill should specialize in painting walls, and Frank should specialize in painting window frames.

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