Mary Takes 4 Minutes to Make a Sandwich and 6

question 289

Essay

Mary takes 4 minutes to make a sandwich and 6 minutes to mix a cocktail. Her sister Ash takes 4 minutes to make a sandwich and 4 minutes to mix a cocktail. Calculate each sisterʹs opportunity cost. Which of the two sisters has an absolute advantage in making sandwiches? In mixing cocktails? Which of the two has a comparative advantage in making sandwiches? In mixing cocktails? $$\begin{array} { | l l | l l | } \hline \begin{array} { l } \text { Nation A's production } \\\text { in 1 day }\end{array} && { \begin{array} { l } \text { Nation B's production } \\\text { in 1 day }\end{array} } \\\hline \text { Computers } & 100 & \text { Computers } & 120 \\\text { Software } & 140 & \text { Software } & 150 \\\hline\end{array}$$

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Definitions:

Death of a Partner

A significant event in a partnership that necessitates the revaluation and redistribution of partnership assets, liabilities, and equity according to the partnership agreement.

Personal Risk

refers to the uncertainties facing individuals that may threaten their health, safety, or financial security.

Indefinitely

An undefined period of time, with no set end date or limitation.