Michael and Angelo are both artists who can create sculptures or paintings each day. The following table describes their maximum outputs per day. Use this table to answer the questions that follow.

-Does either Michael or Angelo have a comparative advantage?
A) Yes, Michael has a comparative advantage in both sculptures and paintings.
B) Yes, Angelo has a comparative advantage in both sculptures and paintings.
C) Yes, Michael has a comparative advantage in paintings, and Angelo has a comparative advantage in sculptures.
D) Yes, Michael has a comparative advantage in sculptures, and Angelo has a comparative advantage in paintings.
E) No, neither has a comparative advantage.

Question

Michael and Angelo are both artists who can create sculptures or paintings each day. The following table describes their maximum outputs per day. Use this table to answer the questions that follow.
 
-Does either Michael or Angelo have a comparative advantage?
A) Yes, Michael has a comparative advantage in both sculptures and paintings. 
B) Yes, Angelo has a comparative advantage in both sculptures and paintings. 
C) Yes, Michael has a comparative advantage in paintings, and Angelo has a comparative advantage in sculptures. 
D) Yes, Michael has a comparative advantage in sculptures, and Angelo has a comparative advantage in paintings. 
E) No, neither has a comparative advantage.

Quizplus · Accepted Answer

Comparative advantage is the ability of an individual or a firm to produce a good or service at a lower opportunity cost than other producers. In this case, Michael has a lower opportunity cost in producing paintings (5/4) compared to sculptures (4/5), so he has a comparative advantage in paintings. Angelo has a lower opportunity cost in producing sculptures (3/2) compared to paintings (2/3), so he has a comparative advantage in sculptures. Therefore, the best choice is (C) as both artists have a comparative advantage in different goods.

Michael and Angelo Are Both Artists Who Can Create Sculptures