In a case where there are two possible work activities and two workers,which of the following is true regarding to comparative advantage?

Question

Quizplus · Accepted Answer

According to the principle of comparative advantage, each person should specialize in the activity in which they have a lower opportunity cost. Since there are only two activities and two workers, each person must have a comparative advantage in one activity but not both. If one person had a comparative advantage in both activities, it would be more efficient for that person to do both activities and the other person would not have a role in the production process. If both people had a comparative advantage in both activities, there would be no gains from trade and no reason to specialize. Similarly, if no one had a comparative advantage in either activity, there would also be no gains from trade and no reason to specialize.

In a Case Where There Are Two Possible Work Activities