Suppose You Can Type a Paper in Two Hours or Mow

question 203

Multiple Choice

Suppose you can type a paper in two hours or mow the lawn in four hours, while it takes your friend Gabriela eight hours to type a paper or two hours to mow the lawn. Which of the following is true?

• A) You have a comparative advantage in typing.
• B) You have a comparative advantage in mowing the lawn.
• C) You and Gabriela could save time if you mowed her lawn while she typed your paper.
• D) You and Gabriela cannot gain from specialization and trade.

---

Definitions:

Nash Equilibrium

A concept in game theory where no player can benefit by changing their strategy if the strategies of the other players remain unchanged.

Payoff

The return or reward from an investment or decision, often evaluated in terms of profit or benefit gained.

Nash Equilibrium

A concept in game theory where no player can benefit by changing strategies if other players keep their strategies unchanged.

Two-Person Game

A strategic interaction between two players where the choices of each player affect the outcome for the other, typically analyzed in game theory.