Referring to the textbook's example of Babe Ruth,the famous player for the New York Yankees-- 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 to economies of scale

Question

Quizplus · Accepted Answer

The principle of comparative advantage states that it is beneficial for individuals, firms or countries to specialize in producing the goods or services in which they have a lower opportunity cost and trade with others for the goods or services in which they have a higher opportunity cost. Babe Ruth had a higher opportunity cost as a pitcher than as a batter and outfielder, so he specialized in those roles where he had a comparative advantage.

Referring to the Textbook's Example of Babe Ruth,the Famous Player