Respuesta :
Answer:
Explanation:
Absolute Advantage : Someone can produce more output of a good/service with lower input. (Input = time here)
Comparative Advantage : Someone can produce more of a good/service with lesser opportunity cost in terms of other good/service.
Clutch Brakes Trade off ratios
Nancy 4 2 1:2 / 0.5:1
Bill 6 2 3:1 / 1:0.33
** Nancy & Bill are equally efficient with brakes, take equal time in that (2=2). Nancy is more efficient with clutch - takes lesser time than Bill (4<6) .
So - Nobody has Absolute Advantage in brakes, but Nancy has Absolute Advantage in clutch.
** Nancy is twice more productive in Brakes than Clutch (takes half time in brakes than clutch - 2,4). Bill is thrice more productive in Brakes than Clutch (takes 1/3rd time than clutch - 2,6).
Nancy can replace brakes by sacrifising o.5 of a clutch replacement, Bill can replace brakes by sacrifising lesser i.e 0.33 of a clutch replacement. Also - Nancy can replace Clutch by sacrifising 2 brakes replacement, Bill can replace clutch by sacrifising more i.e 3 brakes replacement)
So, Bill has Comparative Advantage in Brakes, Nancy has comparative Advantage in Clutch.
