In 1 hour,Robinson Crusoe can either shoot 4 birds or catch 4 fish.A typical native on a nearby island can either shoot 5 birds or catch 10 fish in an hour's time.Which of the following is true according to the doctrine of comparative advantage?

Question

Quizplus · Accepted Answer

According to the doctrine of comparative advantage, a country/person should specialize in producing the good/service that they have a lower opportunity cost in producing and trade with another country/person who has a lower opportunity cost in producing the other good/service. In this case, Crusoe's opportunity cost of shooting birds is 1 fish (since he can catch 4 fish in an hour), while the native's opportunity cost of shooting birds is 0.5 fish (since he can catch 10 fish in an hour). Therefore, Crusoe should specialize in shooting birds (where his opportunity cost is lower) and trade with the native for fish (where his opportunity cost is higher).

In 1 Hour,Robinson Crusoe Can Either Shoot 4 Birds or Catch