B1 and B2 are both members of the pit crew for a famous team in Formula One autoracing. B1 takes 4 seconds to refuel the car and 2 seconds to replace a tire. B2 takes 6 seconds to refuel the car and 2 seconds to replace a tire. a) Create an opportunity costs table. (Remember: 1 output/resource to get the OC). Do not make a big table. b) Can B1 and B2 benefit for specialization and trade? Explain the basis of specialization and trade. Maximum of 2 sentences. c) Who has an absolute advantage in the refuelling the car and replacing a tire? Based from the given, explain briefly.
B1 and B2 are both members of the pit crew for a famous team in Formula One autoracing. B1 takes 4 seconds to refuel the car and 2 seconds to replace a tire. B2 takes 6 seconds to refuel the car and 2 seconds to replace a tire. a) Create an opportunity costs table. (Remember: 1 output/resource to get the OC). Do not make a big table. b) Can B1 and B2 benefit for specialization and trade? Explain the basis of specialization and trade. Maximum of 2 sentences. c) Who has an absolute advantage in the refuelling the car and replacing a tire? Based from the given, explain briefly.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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answer a b c
Transcribed Image Text:B1 and B2 are both members of the pit crew for a famous team in Formula One autoracing. B1
takes 4 seconds to refuel the car and 2 seconds to replace a tire. B2 takes 6 seconds to refuel
the car and 2 seconds to replace a tire.
a) Create an opportunity costs table. (Remember: 1 output/resource to get the OC). Do not
make a big table.
b) Can B1 and B2 benefit for specialization and trade? Explain the basis of specialization
and trade. Maximum of 2 sentences.
c) Who has an absolute advantage in the refuelling the car and replacing a tire? Based
from the given, explain briefly.
d) Who has a comparative advantage in the refuelling the car and replacing a tire? Based
from the opportunity cost table, explain briefly.
e) If both members decided to trade with each other in terms of their roles, which role will
each one give the other? Based from the opportunity cost table, explain briefly.
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