Attempts Average 12 3 The power of trade Kate and Jake need

Attempts: Average: 12 3. The power of trade Kate and Jake need to decide which one of them will take time off from work to complete the rather urgent task of pruning their trees. Kate is pretty good with a pole saw; she can prune the trees in 30 minutes. Jake is somewhat slow; it takes him 5 hours to prune the trees. Kate earns $160 per hour as a business consultant, while Jake earns $20 per hour as a lifeguard. Keeping in mind that either Kate or Jake must take time off from work to prune the trees, who has the lowest opportunity cost of completing the task? O Kate O Jake O Kate and Jake face identical opportunity costs According to the theory of comparative advantage, who should prune the trees? O Jake O Either one of them O Kate QNA 3.16 © 2004-2016 Api. Ai nghts reserved. Continue without saving

Solution

Kate prune the tree in 30 minutes and kate can earn 160 in one hour which means $80 in 30 minutes

Whereas jake takes 5hours where she can earn $20 per hour. Thus opportunity cost is $100.

Thus Jake has more opportunity cost and Kate has less opportunity cost.

Kate has lower opportunity cost and should prune the tree