Tom takes 20 minutes to cook an egg and 5 minutes to make a sandwich. Jerry takes 15 minutes to cook an egg and 3 minutes to make a sandwich. Both individuals will be better off if
A)they don't trade as no one has the comparative advantage in either of the two goods.
B)they trade, no matter who trades sandwiches and who eggs.
C)Jerry trades sandwiches in exchange for eggs.
D)Tom trades sandwiches in exchange for eggs.

Question

Quizplus · Accepted Answer

Jerry has a comparative advantage in making sandwiches because he takes less time than Tom. Therefore, Jerry should trade sandwiches for eggs, which Tom can cook relatively more efficiently.

Tom Takes 20 Minutes to Cook an Egg and 5