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Step 1: make note of units involved in the problem

Solving for comparative advantage when questions involve units of input rather than units of output. Acres Needed to Produce 1 Bushel of:. Apples Pears Tony 5 2 Chris 6 3. acres acres acres acres. 1 acre = 1/5 apple 1 acre = ½ pear

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Step 1: make note of units involved in the problem

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  1. Solving for comparative advantage when questions involve units of input rather than units of output. Acres Needed to Produce 1 Bushel of: Apples Pears Tony 5 2 Chris 6 3 acres acres acres acres 1 acre = 1/5 apple 1 acre = ½ pear 1 acre = 1/6 apple1 acre = 1/3 pear 1 apple = 2½ pear 1 pear = 2/5 apple 1 apple = 2 pear1 pear = ½ apple Step 1: make note of units involved in the problem Step 2: convert units of input into units of output; this is the extra step you must do when solving “input” problems Step 3: solve for comparative advantage as with any other “output” problem Step 4: solution: in this case, Chris’ opportunity costs are lower when growing apples, so he should specialize and grow apples. Tony’s opportunity costs are lower for growing pears, so he should likewise specialize and plant pear trees.

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