Between Mateo and Sophia, who has the comparative advantage in car washing, and who has the comparative advantage in lawn mowing?

a. Sophia in washing, Mateo in mowing
b. Sophia in washing, neither in mowing
c. Mateo in washing, Sophia in mowing
d. Mateo in washing, neither in mowing

1 answer

To determine who has the comparative advantage in car washing and lawn mowing between Mateo and Sophia, we need to compare their opportunity costs for each task.

  1. Define opportunity cost: The opportunity cost of performing a task is what you give up to perform that task. Each person must give up some alternative activity to carry out washing or mowing.

  2. Get data: You'll need specific data to conclude who has the comparative advantage. However, let's say:

    • If Mateo can wash 4 cars in an hour and can mow 2 lawns in the same time, his opportunity cost of washing one car is 1/2 of a lawn.
    • If Sophia can wash 2 cars in an hour and can mow 4 lawns in the same time, her opportunity cost of washing one car is 2 lawns.

From this made-up data:

  • Mateo has a much lower opportunity cost for washing cars (1/2 lawn) compared to Sophia (2 lawns). Thus, Mateo has a comparative advantage in washing cars.
  • Conversely, Sophia can mow 1 lawn for every 1/2 car she washes, while Mateo's opportunity cost for mowing (2 cars) is higher. Therefore, Sophia has a comparative advantage in mowing.

So based on this example, the answer would be: c. Mateo in washing, Sophia in mowing.

However, make sure you apply actual data if different to reach your conclusion.