Walter has reached a crossroads in his life. He is trying to decide whether to change careers. Currently Walter teaches chemistry but is considering entering a more lucrative line of work selling homemade pharmaceuticals. Walter can either teach six classes very well or produce 12 grams of his new drugs in a day.   Interestingly Walter’s friend Jesse is in a similar predicament. Jesse can teach 3 classes very well or produce 2 grams of drugs during a day.

Walter’s opportunity cost of teaching one class: ___________________________

(yes you can have fractional grams of drugs):

Jesse’s opportunity cost of teaching one class: ___________________________

(yes you can have fractional grams of drugs):

Walter’s opportunity cost of making one gram of his drug: ___________________________

(yes you can have fractional numbers of classes):

Jesse’s opportunity cost of making one gram of his drug: ___________________________

(yes you can have fractional numbers of classes):

Who has an absolute advantage in teaching classes? ________________________

Who has the comparative advantage in teaching classes? _____________________

Who has the comparative advantage in making drugs? _____________________