Asked by Samantha
You have an option to hire 2 hunters.
The first hunter is able to kill two deers in an hour, the other hunter is able to kill one deer in an hour.
Do you, without a doubt, hire the first hunter because he has an absolute advantage?
My question is that as there is only one variable- killing deer, you cannot apply comparative advantage but do you still, without a doubt, hire the first hunter because he maximises output for the given resource or is it not possible to determine an answer?
The first hunter is able to kill two deers in an hour, the other hunter is able to kill one deer in an hour.
Do you, without a doubt, hire the first hunter because he has an absolute advantage?
My question is that as there is only one variable- killing deer, you cannot apply comparative advantage but do you still, without a doubt, hire the first hunter because he maximises output for the given resource or is it not possible to determine an answer?
Answers
Answered by
economyst
Since there is only one variable given, I would have plenty of doubts.
e.g., what if the good hunter charges $300 per day while the lesser hunter charges only $100. Or, what if I have all day and only want one deer.
So, I would answer 'no'
e.g., what if the good hunter charges $300 per day while the lesser hunter charges only $100. Or, what if I have all day and only want one deer.
So, I would answer 'no'
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