Question

If Karl can wash 6 cars or wax 3 cars per hour, while Tom can wash 3 cars or wax 3 cars per hour, _____.


the opportunity cost of Karl washing a car is two waxed cars


the opportunity cost of Tom washing a car is two waxed cars


Karl has the comparative advantage in waxing cars


Tom has the comparative advantage in waxing cars

Answer 1

To determine the opportunity costs and comparative advantages of Karl and Tom, we can analyze their production capabilities.

**Karl:**
- Can wash 6 cars per hour.
- Can wax 3 cars per hour.

**Opportunity Cost for Karl:**
- 1 car washed = 3 cars waxed / 6 cars washed = 0.5 cars waxed.
- Therefore, the opportunity cost of washing one car is 0.5 waxed cars.

**Tom:**
- Can wash 3 cars per hour.
- Can wax 3 cars per hour.

**Opportunity Cost for Tom:**
- 1 car washed = 3 cars waxed / 3 cars washed = 1 car waxed.
- Therefore, the opportunity cost of washing one car is 1 waxed car.

**Comparative Advantage:**
- Karl's opportunity cost of washing a car is 0.5 waxed cars and Tom's opportunity cost is 1 waxed car. Since Karl's opportunity cost is lower, Karl has the comparative advantage in washing cars.

Now, considering waxing:
- Karl's opportunity cost of waxing one car = 6 cars washed / 3 cars waxed = 2 cars washed.
- Tom's opportunity cost of waxing one car = 3 cars washed / 3 cars waxed = 1 car washed.

Since Tom's opportunity cost of waxing is lower (1 car washed compared to 2 cars washed for Karl), Tom has the comparative advantage in waxing cars.

Based on this analysis, the correct statements are:

1. The opportunity cost of Tom washing a car is **one waxed car**.
2. The opportunity cost of Karl washing a car is **0.5 waxed cars**.
3. **Karl has the comparative advantage in washing cars**.
4. **Tom has the comparative advantage in waxing cars**.

Thus, the correct answer from the options provided is:

**Tom has the comparative advantage in waxing cars.**