Who has the absolute advantage in outlining you or your


You and a friend have decided to work on a course project. Frankly, your friend is a less than ideal partner. His skills as a researcher are such that he can review and outline two article a day. Moreover, his hunt and peck style limits him to 10 pages of typing a day. On the other hand, in a day you can produce six outlines or type 20 pages.

a. Who has the absolute advantage in outlining you or your friend? What about typing?

b. Who has a comparative advantage in outlining? In typing?

c. According to the principle of comparative advantage, who should specialize in which task?

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Microeconomics: Who has the absolute advantage in outlining you or your
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