so i'm just clarifying what i said in class today about opportunity cost and figuring out which person should do what with comparative advantage (in case anyone was wondering)
when looking at amount of time one takes the value in the cell they are trying to find the comparative cost of and divide by the other value being compared and take the smaller of the values for the 2 different people as who should do that part of the work.
you can do the same thing when talking about quantities and get the same answer, except you have to find the opportunity cost of the specific item and then make it the inverse of what you found. for example: in question 4 when looking for the OC of hte united states making cars you can just take 12/4 and get 3, and then invert it so its still 1/3 and you still have to take the smaller number.
or, if you really want to get wild, you could probably just take the larger of the two numbers before inverting the fraction, because you will still end with the same answer, just not the same numbers.
1 comment:
You would choose to write your econ blog about math and fractions! haha whenever we all have questions concerned the calculus in Economics we will come here. :-)
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