Candice, the caterer for Sarah's baby shower just cancelled. what are we going to do?
where are we going to find a caterer or a meal plan in the next 24-hours Cindy?
well Candice we'll have to make it ourselves. those cooking classes we took last yr might pay off.
That's a great idea! we'll make appetizers and cupcakes.
okay. so since we only have about 10 hrs to cook, i can produce 5 appetizers/ hr or 10 cupcakes/ hr. which is a total of 50 appetizers or 100 cupcakes.
i can make 15 appetizers/hr or 10 cupcakes/hr. totaling up to 150 appetizers or 100 cupcakes
it seems as if you specialize in appetizers
so the opportunity cost would be ...appetizerscupcakeCindy2 cupcakes.5 appetizersCandice2/3 cupcakes1.5 Appetizers
so i have the comparative advantage in Appetizers and you have the comparative advantage in cupcakes. However, you have the absolute advantage in cupcakes and there is no absolute advantage in appetizers since we produce the same amount.
we should do division of labor! since i specialize in cupcakes ill make 150 cupcakes for the party and you make 100 Appetizers so that we have the most amount of food possible for her party.
that economic interdependence seems like it might work. sounds like a plan. see you tomorrow.