Suppose that Chad and Eric work at an auto shop. Chad can change the oil in $5$ cars per day, or wash $3$ cars per day. Eric can change the oil in $8$ cars per day, or wash $4$ cars per day. Use this information to answer the five questions below.

Who has the absolute advantage in changing oil?

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Who has the absolute advantage in washing cars?

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What is Chad$’$s opportunity cost of washing one car? If your answer is a fraction, round to two decimal places.

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What is Eric$’$s opportunity cost of washing one car? If your answer is a fraction, round to two decimal places.

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Who has the comparative advantage in washing cars?

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Answer rating: 100% (QA)

Absolute advantage in changing oil Eric can change 8 cars per day compared to Chads 5 cars per day T... View the full answer