Referring to the textbook's example of Babe Ruth, Ruth switched from being a pitcher to being an outfielder and batter because of the
A) principle of absolute advantage.
B) principle of comparative advantage.
C) desire to be a mercantilist.
D) concept of economies of scale.

Question

Quizplus · Accepted Answer

The principle of comparative advantage suggests that individuals or countries should specialize in producing goods in which they have a lower opportunity cost compared to others. In the case of Babe Ruth, he realized that he had a higher opportunity cost as a pitcher compared to an outfielder and batter, and hence he switched to the latter roles where he had a comparative advantage. This allowed him to maximize his production and contribute more to the overall output.

Referring to the Textbook's Example of Babe Ruth, Ruth Switched