-Refer to Table 3-2. What does each producer have an absolute or comparative advantage in?
A) The farmer has an absolute advantage in neither good, and the rancher has a comparative advantage in meat.
B) The farmer has an absolute advantage in meat, and the rancher has a comparative advantage in potatoes.
C) The farmer has an absolute advantage in potatoes, and the rancher has a comparative advantage in meat.
D) The farmer has an absolute advantage in neither good, and the rancher has a comparative advantage in potatoes.

Question

-Refer to Table 3-2. What does each producer have an absolute or comparative advantage in?
A) The farmer has an absolute advantage in neither good, and the rancher has a comparative advantage in meat. 
B) The farmer has an absolute advantage in meat, and the rancher has a comparative advantage in potatoes. 
C) The farmer has an absolute advantage in potatoes, and the rancher has a comparative advantage in meat. 
D) The farmer has an absolute advantage in neither good, and the rancher has a comparative advantage in potatoes.

Quizplus · Accepted Answer

The farmer having an absolute advantage in potatoes means they can produce potatoes at a lower cost than the rancher. The rancher having a comparative advantage in meat means they can produce meat at a lower opportunity cost than the farmer.