Ginger and Maryann are lost in the jungle, where the only things to eat are mangoes and fish. Ginger can gather mangoes faster than Maryann and can also catch more fish per hour than can Maryann. Therefore:
A) Ginger should specialize in fishing because it is harder than gathering mangoes, and Maryann should specialize in gathering mangoes.
B) Ginger should strike out on her own, because Maryann reduces their combined productivity.
C) Maryann should specialize in the activity for which she has a comparative advantage.
D) Ginger should specialize in the activity for which she has an absolute advantage.

Question

Quizplus · Accepted Answer

Maryann should specialize in the activity for which she has a comparative advantage. This means that Maryann should focus on gathering mangoes, even though Ginger can gather them as well, because Maryann can gather them at a lower opportunity cost. Ginger, on the other hand, should specialize in fishing, even though she can gather mangoes faster than Maryann, because she has a higher productivity in fishing than Maryann does. This will lead to a higher overall productivity for the two of them.

Ginger and Maryann Are Lost in the Jungle, Where the Only