Use the table below to answer the following questions.
Table 2.3.2
Production for one week by Sheila and Bruce
-Given the information in Table 2.3.2,choose the correct statement.
A)Sheila has a comparative advantage in good X.
B)Bruce has a comparative advantage in good X.
C)The opportunity cost to Bruce of an additional unit of X is 0.4 units of Y.
D)A and B are true.
E)B and C are true.

Question

Use the table below to answer the following questions.
Table 2.3.2
Production for one week by Sheila and Bruce 
-Given the information in Table 2.3.2,choose the correct statement.
A)Sheila has a comparative advantage in good X. 
B)Bruce has a comparative advantage in good X. 
C)The opportunity cost to Bruce of an additional unit of X is 0.4 units of Y. 
D)A and B are true. 
E)B and C are true.

Quizplus · Accepted Answer

Bruce has a comparative advantage in good X if he has a lower opportunity cost for producing it compared to Sheila. Statement C is correct if the data shows Bruce's opportunity cost for producing an additional unit of X is indeed 0.4 units of Y. Comparative advantage is determined by who has the lower opportunity cost in producing a good.

Use the Table Below to Answer the Following Questions