Problem
Michael and Angelo live in a small town in Italy. They work as artists. Michael is the more productive artist. He can produce 10 small sculptures each day but only 5 paintings. Angelo can produce 6 sculptures each day but only 2 paintings.
|
Output per day
|
|
|
Sculptures
|
Paintings
|
|
Michael
|
10
|
5
|
|
Angelo
|
6
|
2
|
1. What is the opportunity cost of a painting for each artist?
2. Based on you answer in part a, who has the comparative advantage in producing paintings.
3. If the two men decide to specialize, who should produce the sculptures and who should produce the paintings.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.