Graph 3-1

These figures illustrate the production possibilities frontiers for Robinson Crusoe and Friday with 12 hours of labour.
-According to Graph 3-1:
A)Robinson Crusoe has an absolute advantage in coconuts, and Friday has a comparative advantage in fish
B)Robinson Crusoe has an absolute advantage in both goods, and Friday has a comparative advantage in coconuts
C)Robinson Crusoe has an absolute advantage in fish, and Friday has a comparative advantage in coconuts
D)Robinson Crusoe has an absolute advantage in neither goods, and Friday has a comparative advantage in fish

Question

Graph 3-1

These figures illustrate the production possibilities frontiers for Robinson Crusoe and Friday with 12 hours of labour.
-According to Graph 3-1:
A)Robinson Crusoe has an absolute advantage in coconuts, and Friday has a comparative advantage in fish 
B)Robinson Crusoe has an absolute advantage in both goods, and Friday has a comparative advantage in coconuts 
C)Robinson Crusoe has an absolute advantage in fish, and Friday has a comparative advantage in coconuts 
D)Robinson Crusoe has an absolute advantage in neither goods, and Friday has a comparative advantage in fish

Quizplus · Accepted Answer

Absolute advantage refers to the ability of a party to produce a greater quantity of a good, product, or service than competitors, using the same amount of resources. Comparative advantage refers to the ability of a party to produce a particular good or service at a lower opportunity cost than another. Without seeing Graph 3-1, the correct answer can't be determined based on data. However, based on the given choices, A is selected as the correct answer because it logically states that one party has an absolute advantage in one good while the other has a comparative advantage in another, which aligns with the principles of absolute and comparative advantage in economics.

Graph 3-1 These Figures Illustrate the Production Possibilities Frontiers for Robinson Crusoe