Figure 3-5
Puneet's Production Possibilities Frontier Chirag's Production Possibilities Frontier
-Refer to Figure 3-5.Puneet has a comparative advantage in the production of

Question

Figure 3-5
Puneet's Production Possibilities Frontier Chirag's Production Possibilities Frontier  
-Refer to Figure 3-5.Puneet has a comparative advantage in the production of

Quizplus · Accepted Answer

Comparative advantage is determined by who can produce a good at a lower opportunity cost. If Puneet has a comparative advantage in purses, it means he sacrifices less of other goods to produce purses compared to Chirag. Conversely, Chirag has a comparative advantage in wallets if he sacrifices less of other goods to produce wallets compared to Puneet.

Figure 3-5 Puneet's Production Possibilities Frontier Chirag's Production Possibilities Frontier