Answer on Macroeconomics Question for Velicia
Kris: 6 hours - gallon of beer, 4 hours - 1 pizza.
Pat's opportunity cost of making a pizza = 0.5 gallon of beer
Krise's opportunity cost of making a pizza = 2/3 gallon of beer
So, Pat has the absolute advantage in making pizza, because she needs twice less time to make it.
And Pat also has comparative advantage in making pizza, because 0.5<2/3.
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