Exhibit 2-9 Refer to Exhibit 2-9. Who has the comparative advantage in the production of good B?
A)Alex
B)Adam
C)Both Alex and Adam
D)Neither Alex nor Adam

Name: Exhibit 2-9 Refer to Exhibit 2-9. Who has the comparative advantage in the production of good B? A)Alex B)Adam C)Both Alex and Adam D)Neither Alex nor Adam
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Question

Exhibit 2-9  Refer to Exhibit 2-9. Who has the comparative advantage in the production of good B?
A)Alex 
B)Adam 
C)Both Alex and Adam 
D)Neither Alex nor Adam

Quizplus · Accepted Answer

Alex has the lower opportunity cost of producing good B (1/2 unit of A) compared to Adam (2 units of A). Therefore, Alex has the comparative advantage in the production of good B.