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John Can Milk 20 Cows or Feed 40 Calves in One

question 153

Essay

John can milk 20 cows or feed 40 calves in one hour. Jared can milk 10 cows or feed 50 calves in one hour.
a. Who has the absolute advantage in milking cows? Who has the absolute advantage in feeding calves?
b. Who has the comparative advantage in milking cows? Who has the comparative advantage in feeding calves?
c. If John and Jared, who have been dividing their time equally between milking and feeding, each specialise in the activity in which they have a comparative advantage, how many additional cows can be milked and calves fed per hour?


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