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Suppose both Allieland Noah have 8 hours of time available to them in which they can work or
cook. Allie can earn $10 an hour and Noah earns $5 an hour. Noah can cook dinner in an hour
but it takes Allie 2 hours to cook dinner. Groceries (which are purchased with wages) cost $20 a
unit. has the comparative advantage in cooking. has the comparative advantage in working.

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Suppose both Allieland Noah have 8 hours of time available to them in.pdf

  • 1. Suppose both Allieland Noah have 8 hours of time available to them in which they can work or cook. Allie can earn $10 an hour and Noah earns $5 an hour. Noah can cook dinner in an hour but it takes Allie 2 hours to cook dinner. Groceries (which are purchased with wages) cost $20 a unit. has the comparative advantage in cooking. has the comparative advantage in working.