00:01
So here we're talking about two people.
00:02
We'll call them nancy and bill, and they have two jobs inside the auto world, clutches and breaks.
00:14
Right.
00:14
Now, bill takes four hours to repair a clutch and two hours to replace a set of breaks.
00:21
And nancy takes eight hours to repair a clutch and takes six hours to repair a break.
00:28
So the key thing is here is that bill has absolute advantage in both because he does it at a lower absolute cost.
00:43
If we're just looking at the number of hours required, bill has absolute advantage in both.
00:50
But the other way to look at this is relatively speaking, right? if i was to say, not to do this per hours, but to do this per day, clutches and breaks, and i'm going to think about per day, which is eight hours, nancy can do one clutch per day or she can do 1 .33 breaks per day, right? because she does one break in the first six hours, and then has two hours left to do another one -third of a break job.
01:22
Bill can do two clutches in a day or four break jobs.
01:26
So from nancy's perspective, right, one clutch is equal to 1 .33 breaks...