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 fish, and Friday has an absolute advantage in coconuts
B)Robinson Crusoe has an absolute advantage in coconuts, and Friday has an absolute advantage in fish
C)Robinson Crusoe has an absolute advantage in neither goods, and Friday has an absolute advantage in both goods
D)Robinson Crusoe has an absolute advantage in both goods, and Friday has an absolute 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 an absolute advantage in fish, and Friday has an absolute advantage in coconuts 
B)Robinson Crusoe has an absolute advantage in coconuts, and Friday has an absolute advantage in fish 
C)Robinson Crusoe has an absolute advantage in neither goods, and Friday has an absolute advantage in both goods 
D)Robinson Crusoe has an absolute advantage in both goods, and Friday has an absolute advantage in neither goods

Quizplus · Accepted Answer

The graph shows that Robinson Crusoe can produce 6 coconuts or 4 fish with 12 hours of labour, while Friday can produce 12 coconuts or 8 fish with the same amount of labour. This means that Robinson Crusoe has an absolute advantage in coconuts (he can produce more coconuts with the same amount of labour than Friday can) and Friday has an absolute advantage in fish (he can produce more fish with the same amount of labour than Robinson Crusoe can). Therefore, option B is correct.

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