Angie and Mike work 8-hour shifts in a public health lab. The lab does 2 types of tests: virus identifications (V) and antibody tests (A). Angie can do a virus identification test in 20 minutes and an antibody test is 40 minutes. Mike can do a virus ID in 30 minutes and an antibody test in 120 minutes. Suppose that each lab worker spends half of their shift on each test. 1. Which employee has the absolute advantage in each test? Which employee has the comparative advantage in each test? Explain.

2. Due to the surge a virus variant, the lab manager indicates that more virus ID tests are needed, and that the number of antibody tests is exactly meeting market demand. Demonstrate that specialization according to comparative advantage will increase total output for the lab, enabling it to increase the number of virus ID tests without reducing the number of antibody tests.

3. Suppose that Angie and Mike are trying to work out their specialization without any help from their boss. What terms of trade would make them both better off?

OPTIONAL EXTRA QUESTION IF YOU'RE FEELING CONFIDENT: Demonstrate that trading according to your proposed terms of trade would make both Angie and Mike look better to their boss than if they did not trade tasks. Please see the rubric for details on how you will be assessed for this activity.