Consider two employees, Eddie and Urijah, working for a local construction company installing windows as well as sliding glass doors. The manager of the company is deciding how to allocate Eddie and Urijah's time throughout the workday with the goal of increasing overall productivity. The manager collected some baseline data and has taken note that in one 8 hour work day, Eddie can install 7 sliders OR 28 windows. That is, if Eddie spends the entire 8 hour work day installing windows, he can install 28 of them. Likewise, if Eddie spends the entire 8 hour work day installing sliders, he can install 7 of them. In contrast, in an 8 hour work day, Urijah can install either 21 sliders OR 42 windows Which worker, Eddie or Urijah, is comparatively advantaged at installing windows?

To determine which worker, Eddie or Urijah, has a comparative advantage in installing windows, we need to calculate and compare the opportunity costs for each worker when they choose to install windows instead of sliders.

### Understanding Comparative Advantage

**Comparative advantage** occurs when a worker can produce a good or service at a lower opportunity cost than another. In this case, we want to find out who sacrifices fewer sliders when installing windows.

### Opportunity Costs

1. **Opportunity Cost for Eddie**

   - Eddie can install 28 windows or 7 sliders in an 8-hour workday.
   - The opportunity cost of 1 window in terms of sliders is calculated by determining how many sliders are forgone per window:

     \[
     \text{Opportunity Cost for Eddie (windows)} = \frac{7 \text{ sliders}}{28 \text{ windows}} = \frac{1}{4} \text{ slider per window}
     \]

2. **Opportunity Cost for Urijah**

   - Urijah can install 42 windows or 21 sliders in an 8-hour workday.
   - The opportunity cost of 1 window in terms of sliders is calculated similarly:

     \[
     \text{Opportunity Cost for Urijah (windows)} = \frac{21 \text{ sliders}}{42 \text{ windows}} = \frac{1}{2} \text{ slider per window}
     \]

### Comparative Advantage Analysis

- **Eddie's Opportunity Cost:** \( \frac{1}{4} \) slider per window
- **Urijah's Opportunity Cost:** \( \frac{1}{2} \) slider per window

Since Eddie sacrifices only \( \frac{1}{4} \) of a slider for each window he installs, compared to Urijah who sacrifices \( \frac{1}{2} \) of a slider, Eddie has a lower opportunity cost for installing windows.

### Conclusion

- **Comparative Advantage in Windows Installation:** Eddie

Eddie is comparatively advantaged at installing windows because he gives up fewer sliders per window installed compared to Urijah.

If you have further questions or need additional details, feel free to ask!

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### Additional Questions:

1. What is the opportunity cost for Eddie to install 1 slider instead?
2. How does the concept of absolute advantage differ from comparative advantage in this scenario?
3. If both workers specialize in their comparative advantage, what is the total output of sliders and windows in a day?
4. How can the manager use the concept of comparative advantage to improve overall productivity?
5. What factors could influence the opportunity cost for each worker over time?
6. How would changes in demand for sliders and windows impact the allocation of tasks?
7. If Urijah improved his efficiency in installing windows, how would that affect his comparative advantage?
8. What role do opportunity costs play in resource allocation decisions beyond this specific scenario?

**Tip:** Understanding comparative advantage can help businesses allocate tasks more efficiently, leading to higher productivity and better resource utilization.

Explore who has a comparative advantage in installing windows between Eddie and Urijah in a local construction company. Understand the concept of opportunity cost and how it affects productivity. Suitable for high school students studying economics or business.

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