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) Jerry trades sandwiches in exchange for eggs.
C) they trade, no matter who trades sandwiches and who eggs.
D) Tom trades sandwiches in exchange for eggs.

Question

Quizplus · Accepted Answer

Jerry has a comparative advantage in making sandwiches because he can make them more quickly than Tom. Tom has a comparative advantage in cooking eggs because the difference in time it takes him compared to Jerry is smaller. Therefore, both will benefit if Jerry trades sandwiches for Tom's eggs.

Tom Takes 20 Minutes to Cook an Egg and 5