Use the following scenario to answer the following questions:
Karl and Jager produce cars and trucks.Karl can produce 10 cars per hour or 5 trucks per hour.Jager can produce 12 cars per hour or 4 trucks per hour.
-Based on the scenario,Karl has

Question

Quizplus · Accepted Answer

Karl has a comparative advantage in producing trucks because he gives up fewer cars to produce one more truck compared to Jager. For Karl, the opportunity cost of producing one truck is 2 cars (10 cars/5 trucks), whereas for Jager, it is 3 cars (12 cars/4 trucks). Comparative advantage is determined by who has the lower opportunity cost in production, not by who can produce more overall.

Use the Following Scenario to Answer the Following Questions