You and your roommate Chris must clean your apartment before your parents visit
ID: 1132223 • Letter: Y
Question
You and your roommate Chris must clean your apartment before your parents visit for Parents’ Weekend. By yourself, you can clean the entire apartment in two days, and Chris can clean the entire apartment in two days. Together, you could both clean the apartment in one day. Additionally, you can earn $100 per day working as a computer consultant, while Chris can earn $50 per day working as a disk jockey at the local radio station.
a. Who has a lower opportunity in cleaning the apartment? Why?
b. According to the principle of comparative advantage, who should clean the apartment? What arrangement would make you both better off? Explain.
Explanation / Answer
Ans
Chris because he has to loose only 50 in case he cleans apartment himself and I will loose 100
B Chris should Clea. Apartment. Both of us will be better if Chris focuses on cleaning apartment Whioeas I focus on computer consultant. Any deal between us of sharing 50(2)=100 to 100(2)=200 is beneficial because we both will gain
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