Tom and Di grow tomatoes and turnips. Tom has a comparative advantage in growing tomatoes if
)
A) Tom can grow more tomatoes than Di can
B) his marginal benefit from tomatoes is greater than Di's
C) his opportunity cost of tomatoes is less than Di's opportunity cost of tomatoes
D) his opportunity cost of tomatoes is less than his opportunity cost of turnips

Question

Quizplus · Accepted Answer

Comparative advantage is determined by opportunity cost. Tom has a comparative advantage in growing tomatoes if his opportunity cost of tomatoes (in terms of the amount of turnips he must give up to produce tomatoes) is less than Di's opportunity cost of tomatoes. Option C correctly explains this concept.

Tom and Di Grow Tomatoes and Turnips