Use the following scenario to answer the following questions:
Natasha can produce either 5,000 pounds of cheese or 20 houses per year.Jameson can produce either 5,000 pounds of cheese or 10 houses per year.
-Natasha has a comparative advantage in the production of ________,and Jameson has a comparative advantage in the production of ________.

Question

Quizplus · Accepted Answer

Natasha has a comparative advantage in houses because she gives up fewer pounds of cheese to produce one house compared to Jameson (250 pounds of cheese per house for Natasha vs. 500 pounds for Jameson). Jameson has a comparative advantage in cheese because he gives up fewer houses to produce one pound of cheese compared to Natasha (0.002 houses per pound of cheese for Jameson vs. 0.004 for Natasha).

Use the Following Scenario to Answer the Following Questions