Tom and Di grow tomatoes and turnips. Tom has a comparative advantage in growing tomatoes if
A) Tom can grow more tomatoes than Di can.
B) his opportunity cost of tomatoes is less than Di's opportunity cost of tomatoes.
C) his opportunity cost of tomatoes is less than his opportunity cost of turnips.
D) his marginal benefit from tomatoes is greater than Di's.

Question

Quizplus · Accepted Answer

Comparative advantage is determined by who has the lower opportunity cost in producing a good. If Tom's opportunity cost of producing tomatoes is less than Di's, Tom has a comparative advantage in growing tomatoes.

Tom and Di Grow Tomatoes and Turnips