Michael and Angelo are both artists who can create sculptures or paintings each day.The following table describes their maximum outputs per day.Does either one 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.Does either one 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

To determine comparative advantage, we need to look at the opportunity cost of producing one good versus the other. The opportunity cost is the amount of the other good that could have been produced instead. Michael can either produce 2 sculptures or 5 paintings per day, which means the opportunity cost of producing 1 sculpture is 2.5 paintings. Angelo, on the other hand, can either produce 1 sculpture or 3 paintings per day, which means the opportunity cost of producing 1 sculpture is 3 paintings. Therefore, Michael has a lower opportunity cost of producing paintings, while Angelo has a lower opportunity cost of producing sculptures. Therefore, Michael has a comparative advantage in painting, and Angelo has a comparative advantage in sculpture. Thus, the correct answer is C.

Michael and Angelo Are Both Artists Who Can Create Sculptures