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Question
determining absolute advantage
riley, sean, and jake each set up a car wash. they spend money on resources to hire friends and pay for supplies.
riley spent $3 on resources per car washed.
sean spent $4 on resources per car washed.
jake spent $8 on resources per car washed.
has the absolute advantage because he washes cars most efficiently.
riley
sean
jake
Step1: Calculate cost - per - car for each person
Riley: $\frac{18}{6}=3$ dollars per car. Sean: $\frac{48}{12}=4$ dollars per car. Jake: $\frac{64}{8}=8$ dollars per car.
Step2: Determine who has absolute advantage
The person with the lowest cost - per - car has the absolute advantage in terms of efficiency. Since Riley has the lowest cost per car ($3$ dollars per car), Riley has the absolute advantage.
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