Michael and Angelo are both artists who can create sculptures or paintings each day.The following table describes their maximum outputs per day.Does either one have a comparative advantage?
A)Yes,Michael has a comparative advantage in both sculptures and paintings.
B)Yes,Angelo has a comparative advantage in both sculptures and paintings.
C)Yes,Michael has a comparative advantage in paintings,and Angelo has a comparative advantage in sculptures.
D)Yes,Michael has a comparative advantage in sculptures,and Angelo has a comparative advantage in paintings.
E)No,neither has a comparative advantage.

Question

Michael and Angelo are both artists who can create sculptures or paintings each day.The following table describes their maximum outputs per day.Does either one have a comparative advantage? 
A)Yes,Michael has a comparative advantage in both sculptures and paintings. 
B)Yes,Angelo has a comparative advantage in both sculptures and paintings. 
C)Yes,Michael has a comparative advantage in paintings,and Angelo has a comparative advantage in sculptures. 
D)Yes,Michael has a comparative advantage in sculptures,and Angelo has a comparative advantage in paintings. 
E)No,neither has a comparative advantage.

Quizplus · Accepted Answer

To determine comparative advantage, we need to compare the opportunity costs of producing goods between the two individuals. Michael can produce 2 paintings or 1 sculpture per day, while Angelo can produce 1 painting or 2 sculptures per day.

For Michael, the opportunity cost of producing 1 sculpture is giving up the production of 2 paintings (2 paintings = 1 sculpture). For Angelo, the opportunity cost of producing 1 sculpture is giving up the production of 1 painting (1 painting = 1 sculpture/2).

Therefore, Michael has a comparative advantage in producing paintings (lower opportunity cost of 1 painting = 1/2 of a sculpture), and Angelo has a comparative advantage in producing sculptures (lower opportunity cost of 1 sculpture = 1 painting).

Michael and Angelo Are Both Artists Who Can Create Sculptures