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Business, 20.02.2020 23:09 aaamanda99

Nancy and Bill are auto mechanics. Nancy takes 4 hours to replace a clutch and 2 hours to replace a set of brakes. Bill takes 6 hours to replace a clutch and 2 hours to replace a set of brakes. State whether anyone has an absolute advantage at either task and, for each task, identify who has a comparative advantage.
a) The opportunity cost of a set of brakes for Nancy is 0.50 correct of a clutch replacement.
b) The opportunity cost of a set of brakes for Bill is 0.33 correct of a clutch replacement.
c) Nancy correct has an absolute advantage in clutch replacement.
d) Neither correct has an absolute advantage in brake replacement.
e) Nancy correct has a comparative advantage in clutch replacement.
f) Bill correct has a comparative advantage in brake replacement.

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