Tom and Jerry have one day to work, but two tasks to focus on: building chairs and tables. If Tom spends all day building chairs, he will make 16 chairs. If he instead devotes his day to building tables, Tom will make 4 tables. If Jerry spends his day building chairs, he will make 14 chairs; if he spends the day building tables, he will make 7 tables. After looking at the production possibilities for both Tom and Jerry, what can we conclude?
A) Tom has a comparative advantage at producing chairs.
B) Jerry has a comparative advantage at producing chairs.
C) Tom has a comparative advantage at producing tables.
D) Neither Tom nor Jerry has a comparative advantage at producing either good.

Question

Quizplus · Accepted Answer

Tom can produce 16 chairs in a day, while Jerry can only produce 14 chairs in a day. This means that Tom has a comparative advantage at producing chairs. Without information about the production possibilities for tables, we cannot determine if Tom or Jerry has a comparative advantage at producing tables.

Tom and Jerry Have One Day to Work, but Two