Antonio and Elyse are two woodworkers who both make kitchen cabinets and bathroom vanities. In one month, Antonio can make 12 kitchen cabinets or 36 bathroom vanities, where Elyse can make 10 kitchen cabinets or 50 bathroom vanities. Who has a comparative advantage in which product?

Question

Quizplus · Accepted Answer

Antonio's opportunity cost of making one kitchen cabinet is 3 bathroom vanities (36/12), while Elyse's is 5 bathroom vanities (50/10). Therefore, Antonio has a comparative advantage in kitchen cabinets because he gives up fewer bathroom vanities to make one. Conversely, Elyse has a comparative advantage in bathroom vanities because she gives up fewer kitchen cabinets to make one (her opportunity cost in terms of kitchen cabinets is lower).

Antonio and Elyse Are Two Woodworkers Who Both Make Kitchen