You are in charge of allocating residents to your dormitorys baseball and basketball teams. You are down

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You are in charge of allocating residents to your dormitoryʼs baseball and basketball teams. You are down to the last four people, two of whom must be allocated to baseball and two to basketball. The accompanying table gives each personʼs batting average and free-throw average.

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a. Explain how you would use the concept of comparative advantage to allocate the players. Begin by establishing each playerʼs opportunity cost of free throws in terms of batting average. 

b. Why is it likely that the other basketball players will be unhappy about this arrangement but the other baseball players will be satisfied? Nonetheless, why would an economist say that this is an efficient way to allocate players for your dormʼs sports teams?  

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Macroeconomics

ISBN: 9781319245269

6th Edition

Authors: Paul Krugman, Robin Wells

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