I can make 8 free-throws in a row and 24 lay-ups in a row. A friend of mine can only make 3 free-throws in a row and 6 lay-ups in a row. In terms of basketball prowess, I can definitely make more free-throws and lay-ups than said friend. However, from an economic standpoint, my friend has a comparative advantage in making free-throws over me as the data below shows.
- Price of 1 Lay-up
- Me: 1/3 free-throw
- My friend: 1/2 free-throw
- Price of 1 Free-throw
- Me: 3 lay-ups
- My friend: 2 lay-ups
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