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Before she goes to medical school, Mrs. Snake works part-time for $7.00/hour, and she spends the rest of her time at home with the children. Her husband works full-time for $18.00/hour. After medical school, she earns $50.00/hour (her husband continues to earn $18.00/hour). Answer the questions below. If you do not have enough information to answer the question, then write down the information you would need in order to answer. If you do not explain your answer, you will not receive full credit.
a. After Mrs. Snake completes medical school, who has absolute advantage in the labor market? Explain.
b. After Mrs. Snake completes medical school, who has comparative advantage in the labor market? Explain.
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Tom Hanks and a man named Wilson are stranded on a tropical island. In one hour Tom can cut down 12 coconuts or catch 8 fish. In one hour Wilson can cut down 14 coconuts or catch 7 fish. A) Who has the comparative advantage at producing coconuts..
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