Jane can cook dinner in 30 minutes and wash the laundry in 20 minutes. her roommate takes half as long to do each task. how should the roommates allocate the work?

there are no gains from trade in this situation

Explanation:

Great Question, I had this question in my social studies class last week and it seems that you are missing the multiple choice answers which are the following,

A. Jane should do more cooking based on his comparative advantage

B. Jane should do more of the washing based on his comparative advantage

C. Jane should do more of the washing based on his absolute advantage

D. there are no gains from trade in this situation

In this question the answer would be D. there are no gains from trade in this situation. This is because Janes roommate does everything faster so all she can give him all her tasks and Jane would benefit, but the roommate has no way of benefiting. Therefore there are no even gains from a trade in this case.

I hope this answered your question. If you have any more questions feel free to ask away at .

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