Suppose an American worker can make 100 nets or catch 1,000 fish per day. A Chilean worker, on the other hand, can produce 40 nets or catch 400 fish per day. Which of the following statements is true?
A) The United States has a comparative advantage at producing nets.
B) Chile has a comparative advantage at producing nets.
C) Both the United States and Chile have a comparative advantage at producing nets.
D) Neither the United States nor Chile has a comparative advantage at producing nets.

Question

Quizplus · Accepted Answer

The Answer of Suppose an American worker can make 100 nets or catch 1,000 fish per day. A Chilean worker, on the other hand, can produce 40 nets or catch 400 fish per day. Which of the following statements is true?
A) The United States has a comparative advantage at producing nets.
B) Chile has a comparative advantage at producing nets.
C) Both the United States and Chile have a comparative advantage at producing nets.
D) Neither the United States nor Chile has a comparative advantage at producing nets.

Suppose an American Worker Can Make 100 Nets or Catch