Scenario: Mike and John work as waiters in a restaurant. Mike can efficiently wait on ten customers per hour, while John can efficiently wait on seven customers per hour. The restaurant also has a bar. If both of them work as bartenders, Mike is able to serve nine customers per hour and John is able to serve ten customers per hour.
-Refer to the scenario above.Which of the following statements is true in this case?

Question

Quizplus · Accepted Answer

Comparative advantage is determined by who gives up less of other goods to produce a good. Mike waits on more customers per hour (10) than John (7) when waiting tables, indicating Mike has a comparative advantage in waiting tables because he is relatively more efficient at it compared to bartending, where his efficiency decreases to 9 customers per hour, whereas John's efficiency increases when bartending (10 customers per hour).

Scenario: Mike and John Work as Waiters in a Restaurant