Table 2-6

Table 2-6 shows the output per week of two jewelers, Serena and Haley. They can either devote their time to making bracelets or making necklaces.
-Refer to Table 2-6.Which of the following statements is true?
A)Haley has an absolute advantage in making both products.
B)Serena has an absolute advantage in making both products.
C)Haley has an absolute advantage in making bracelets and Serena in making necklaces.
D)Haley has an absolute advantage in making necklaces and Serena in making bracelets.

Question

Table 2-6
  
Table 2-6 shows the output per week of two jewelers, Serena and Haley. They can either devote their time to making bracelets or making necklaces.
-Refer to Table 2-6.Which of the following statements is true?
A)Haley has an absolute advantage in making both products. 
B)Serena has an absolute advantage in making both products. 
C)Haley has an absolute advantage in making bracelets and Serena in making necklaces. 
D)Haley has an absolute advantage in making necklaces and Serena in making bracelets.

Quizplus · Accepted Answer

To determine absolute advantage, we look at who can produce more output in a given time. In this case, we can see that Haley can produce more bracelets and necklaces per week than Serena. However, when we compare the two jewelers' production rates for bracelets and necklaces separately, we can see that Serena produces more necklaces per week than Haley, while Haley produces more bracelets per week than Serena. Therefore, Haley has an absolute advantage in making bracelets and Serena in making necklaces. Therefore, the correct answer is C.

Table 2-6 Table 2-6 Shows the Output Per Week of Two Jewelers