(Consider This) Madison, the CPA, is faster than Mason, the house painter, at both accounting services and painting. This means that

Question

Quizplus · Accepted Answer

According to the principle of comparative advantage, even if Madison is faster than Mason at both accounting and painting, she should specialize in the service in which she has a comparative advantage, meaning the service in which she is relatively more efficient. This would be accounting services, as she is faster at it than Mason. Therefore, Madison should trade her accounting services for Mason's painting services, as long as the opportunity cost of her accounting services is lower than the opportunity cost of Mason's painting services. This would result in both Madison and Mason being better off than if they did not trade services.

(Consider This) Madison, the CPA, Is Faster Than Mason, the House