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Elliot and his friend Olivia are both volunteers at a cat rescue. The shelter s...

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Elliot and his friend Olivia are both volunteers at a cat rescue. The shelter supervisor

asks the two of them to clean out kennels and haul bags of cat food from the

donation area to storage. Elliot knows from his last time volunteering that he can clean out 8 kennels in an hour or move 5 bags of cat food. Olivia can

clean out 10 kennels in an hour or move 6 bags of cat food. Olivia suggests that

they should both do equal amounts of each task. 

Answer the following questions

to determine if Olivia is making the best decision.

a. Who has an absolute advantage in doing each task?

has the absolute advantage in cleaning kennels and 
has the absolute advantage in moving cat food bags.

b. What are Olivia’s opportunity costs of doing each

task?

Note: Please round your answer to 2 decimal places if necessary.

Olivia's opportunity cost of cleaning a kennel is  food bags moved and her opportunity cost of moving a bag of cat food is  kennels cleaned.

c. What are Elliot's opportunity costs of doing each task?

Note: Please round your answer to 2 decimal places if necessary.

Elliot's opportunity cost of cleaning a kennel is  food bags moved and his opportunity cost of moving a bag of cat food is  kennels cleaned.

d. Who has a comparative advantage in doing each task?

has the comparative advantage in cleaning kennels and 
has the comparative advantage in moving bags of cat food.

e. Who should do each task to minimise the amount of

time they both spend?

should clean kennels and 
should move bags of cat food.

f. Was Olivia’s suggestion the best possible way to

allocate your time? Why or why not?

To maximise efficiency in completing tasks, agents should 
.  

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