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 a comparative advantage in fish, and Friday has a comparative advantage in coconuts
B)Robinson Crusoe has a comparative advantage in coconuts, and Friday has a comparative advantage in fish
C)Robinson Crusoe has a comparative advantage in fish, and Friday has a comparative advantage in fish
D)Robinson Crusoe has a comparative advantage in fish, and Friday has a comparative advantage in neither goods

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 a comparative advantage in fish, and Friday has a comparative advantage in coconuts 
B)Robinson Crusoe has a comparative advantage in coconuts, and Friday has a comparative advantage in fish 
C)Robinson Crusoe has a comparative advantage in fish, and Friday has a comparative advantage in fish 
D)Robinson Crusoe has a comparative advantage in fish, and Friday has a comparative advantage in neither goods

Quizplus · Accepted Answer

The graph shows that Robinson Crusoe can produce either 8 coconuts or 6 fish with 12 hours of labor, while Friday can produce either 12 coconuts or 12 fish with the same amount of labor. This means Robinson Crusoe has a lower opportunity cost of producing coconuts (giving up 0.75 fish per coconut) compared to Friday (giving up 1 fish per coconut), while Friday has a lower opportunity cost of producing fish (giving up 1 coconut per fish) compared to Robinson Crusoe (giving up 1.33 coconuts per fish). Therefore, Robinson Crusoe has a comparative advantage in coconuts, and Friday has a comparative advantage in fish.

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