Alice and Gene work in the mailroom,sorting and delivering mail.In order for them to benefit from specialisation and trade,Alice must
A)be able to both sort and deliver faster than Gene.
B)have a comparative advantage in one task and Gene must have a comparative advantage in the other task.
C)be equally productive in both sorting and delivering.
D)have a comparative advantage in both sorting and delivering.
E)be equally productive as Gene in both sorting and delivering.

Question

Quizplus · Accepted Answer

For Alice and Gene to benefit from specialization and trade, they must have a comparative advantage in different tasks. This means that one of them should be better at sorting while the other is better at delivering. By focusing on their comparative advantage, they can produce more of their respective tasks, leading to a higher overall output and increased efficiency. Therefore, Option B is the best choice.

Alice and Gene Work in the Mailroom,sorting and Delivering Mail