Exhibit 2-8 Refer to Exhibit 2-8. Who has the comparative advantage in the production of good X?
A)Maria
B)Maya
C)Both Maria and Maya
D)Neither Maria nor Maya

Question

Exhibit 2-8  Refer to Exhibit 2-8. Who has the comparative advantage in the production of good X?
A)Maria 
B)Maya 
C)Both Maria and Maya 
D)Neither Maria nor Maya

Quizplus · Accepted Answer

Maya has a comparative advantage in the production of good X because she has a lower opportunity cost. Maya can produce one unit of X by giving up only 2 units of Y while Maria has to give up 3 units of Y for one unit of X. Hence, Maya is relatively better at producing X than Maria.