Consider the following household.In 5 hours,Bob can cook 5 meals or clean 6 rooms.In 5 hours,Mary can cook 30 meals or clean 10 rooms.Select the best statement.
A)Bob has an absolute advantage in the production of both goods.
B)Since Mary is better at producing both goods, she should produce both.
C)Bob has a comparative advantage in cooking.
D)Mary should specialize in cooking.
E)none of the above

Question

Quizplus · Accepted Answer

Mary has a higher opportunity cost for cleaning rooms than cooking meals, so she should specialize in cooking where she has a comparative advantage.

Consider the Following Household