Table 3.2
-Consider two individuals,Rose and Sharon,who produce fish and coconuts.Rose and Sharon's hourly productivity are shown in Table 3.2.Which of the following is true?
A) Rose has both an absolute and comparative advantage in coconut production.
B) Rose has both an absolute and comparative advantage in fish production.
C) Rose has neither an absolute nor comparative advantage in coconut production.
D) Rose has an absolute advantage, but not a comparative advantage, in fish production.

Question

Table 3.2
-Consider two individuals,Rose and Sharon,who produce fish and coconuts.Rose and Sharon's hourly productivity are shown in Table 3.2.Which of the following is true?
A) Rose has both an absolute and comparative advantage in coconut production. 
B) Rose has both an absolute and comparative advantage in fish production. 
C) Rose has neither an absolute nor comparative advantage in coconut production. 
D) Rose has an absolute advantage, but not a comparative advantage, in fish production.

Quizplus · Accepted Answer

Rose has an absolute advantage in coconut production because she can produce more coconuts per hour than Sharon. She also has a comparative advantage in coconut production because she can produce coconuts at a lower opportunity cost than Sharon.

Table 3.2 -Consider Two Individuals,Rose and Sharon,who Produce Fish and Coconuts.Rose and Coconuts.Rose