Question

Randy and Frank are both landscapers. Randy can mow 6 lawns per day or prune 9 trees. Frank can mow 8 lawns per day or prune 10 trees. Randy and Frank each work 240 days per year.

a. Determine who has the absolute advantage at each task, what their respective opportunity costs are for mowing a lawn, and who has comparative advantage in each task.

(Click to select)  Frank  Randy  Both Randy and Frank  Neither Randy nor Frank  has an absolute advantage in mowing lawns.

(Click to select)  Frank  Randy  Both Randy and Frank  Neither Randy nor Frank  has an absolute advantage in pruning trees.

Instructions: Round your answers to two decimal places.

The opportunity cost of mowing a lawn for Randy is   trees.

The opportunity cost of mowing a lawn for Frank is   trees.

(Click to select)  Frank  Randy  Both Randy and Frank  Neither Randy nor Frank  has a comparative advantage in mowing lawns.

(Click to select)  Randy  Frank  Both Randy and Frank  Neither Randy nor Frank  has a comparative advantage in pruning trees.

b. Assuming that only one of the tasks is performed, then together Randy and Frank can service a maximum of   lawns or trees each year.  

c. If each landscaper fully specializes according to his comparative advantage, then the maximum number of lawns that can be mowed annually is  , and the maximum number of trees that can be pruned is   per year.

Answer 1

a. Frank
Frank
(As Frank can mow more loans and prune more trees than Randy so Frank has absolute advanatge in both.)

The opportunity cost of mowing a lawn for Randy = Number of trees not pruned/Number of lawns mowed = 9/6 = 1.5 trees

The opportunity cost of mowing a lawn for Frank = Number of trees not pruned/Number of lawns mowed = 10/8 = 1.25 trees

Frank has a comparative advantage in mowing lawns.
(as his opportunity cost is lower)

Randy has a comparative advantage in pruning trees.
(Because Frank has in lawns so, Randy has in trees.)

b. Total lawns mowed by Randy in a year = 6*240 = 1440
Total lawns mowed by Frank in a year = 8*240 = 1920
so, total lawns mowed = 1920 + 1440 = 3360
Total trees pruned by Randy in a year = 9*240 = 2160
Total trees pruned by Frank in a year = 10*240 = 2400
So, total trees pruned = 2160 + 2400 = 4560

Together Randy and Frank can service a maximum of 3360 lawns or 4560 trees each year.  

c. the maximum number of lawns that can be mowed annually is 1920 (only Frank will mow lawns)
the maximum number of trees that can be pruned is 2160 per year. (only Randy will prune trees.)