Table 18.2
-Consider two individuals, Jesse and April, who hand paint kites and snowboards. Table 18.2 shows how much of each good Jesse and April can paint in one hour. Which of the following is TRUE?

Question

Quizplus · Accepted Answer

April can paint 2 kites or 3 snowboards in an hour, while Jesse can paint 1 kite or 2 snowboards in an hour. Thus, April has an absolute advantage in both kites and snowboards. Additionally, April's opportunity cost of painting one kite is 1.5 snowboards (3/2), while Jesse's opportunity cost of painting one kite is 2 snowboards. Therefore, April also has a comparative advantage in painting kites (lower opportunity cost), and a comparative advantage in painting snowboards (higher output per hour).

Table 18.2 -Consider Two Individuals, Jesse and April, Who Hand Paint Kites