Lizzie takes 20 seconds to stuff an envelope and 10 seconds to seal it. Arnold takes 15 seconds to stuff an envelope and 5 seconds to seal it. Lizzie has a comparative advantage in and Arnold has a comparative advantage in .

Question

Quizplus · Accepted Answer

Lizzie has a lower opportunity cost for stuffing envelopes than Arnold (she can either stuff more envelopes or do something else in the time it takes Arnold to stuff one envelope), so she has a comparative advantage in stuffing envelopes. Similarly, Arnold has a lower opportunity cost for sealing envelopes than Lizzie, so he has a comparative advantage in sealing envelopes. Therefore, the best choice is A.

Lizzie Takes 20 Seconds to Stuff an Envelope and 10