ECO101H1 Chapter Notes - Chapter 2: Opportunity Cost, Comparative Advantage, Absolute Advantage
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ECO101H1 Full Course Notes
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Answer what do i have to lose in order to do this? . It"s not the time, it"s what you could have done with that time. Buying 2 kilos of co ee for : If buying 2 kilos of co ee for means you must spend less on steak (6 kg less) Co ee cost, in steaks: steaks/kg of co ee x $/$ = steaks/$ x $/kg of co ee. = 3 steaks/1 kg of co ee a model of katya and andreas. Each has 10 hours in a day. 2 products: beer and chips (you have to produce them in order to consume them) Katya: 3 ounces of beer/hour ; 3 ounces of chips/hour. Andreas: 1/2 ounce of beer/hour ; 1 ounce of chips/hour. Katya: 15 ounces of beer ; 15 ounces of chips. Andreas: 4 ounces of beer ; 2 ounces of chips absolute advantage.
