Tyanna & Kamya both own the only two hair businesses in their neighborhood.
Tyanna: "Hey girl, I see your work on Instagram and Facebook, your work looks really good!
Kamya: Thank hun, same for you, its crazy how we're the only black business in the neighborhood."
"Yeah, which is exactly why we have to support each other!"
"Agreed, so whats a full day of work for you like?"
"In a day i can make 90 bundles and 50 closures, how about you?"
"Im quite the opposite, I can make 85 closures and 40 bundles a day"
"So you specialize in making bundles and I specialize in making closures"
"Which means I have the absolute advantage in making closures due to the fact that i can complete 85 a day and you can only only make 50"
"Hmm so that means I have the absolute advantage in making bundles because I can make 90 a day while you can only make 40, Got it! And what about our opportunity cost?"
"Yup and oh yes, lets have a seat so I can show you on a chart it'll be easier" 1 bundle1 closureTyanna5/9 closures(.55)9/5 bund.(1.8)Kamya85/40 closure(2.12)40/85 bund.(.47)
Yes, that's exactly it, and I kinda have an idea that will help the production of our economic interdependence accelerate; if we use the concept of division of labor by focusing on producing what we specialize in, and then make some trades.
Tyanna: So if im understanding this correctly, I have the comparative advantage for producing bundles b/c my opportuinity cost is is lower (5/9) than yours (85/40) And you have the comp. advantage in producing closures b/c your opp. cost is lower (40/85) than mine (9/5). Click To Edit"Oh soo I have the comparative advantage for producing bundles b/c my opportuinity cost is is lower (5/9) than yours (85/40)" Help Insert ParagraphUndoes the last commandRedoes the last commandTabUntabSet a bold styleSet a italic styleSet a underline styleSet a strikethrough styleClean a styleSet left alignSet center alignSet right alignSet full alignToggle unordered listToggle ordered listOutdent on current paragraphIndent on current paragraphChange current block's format as a paragraph(P tag)Change current block's format as H1Change current block's format as H2Change current block's format as H3Change current block's format as H4Change current block's format as H5Change current block's format as H6Insert horizontal rulelinkDialog.show Summernote 0.8.11 · Project · Issues