Figure 3-3
Ice cream and cones are measured in kilograms.
-Refer to Figure 3-3. What does each of the two producers have a comparative advantage in?

Question

Figure 3-3
Ice cream and cones are measured in kilograms. 
-Refer to Figure 3-3. What does each of the two producers have a comparative advantage in?

Quizplus · Accepted Answer

Ben can produce 1 cone for every 1/2 unit of ice cream, while Jerry can produce 1 cone for every 1 unit of ice cream. This means that Ben has a comparative advantage in cones, as he can produce them with fewer resources than Jerry. Jerry, on the other hand, can produce 1 unit of ice cream for every 1/2 unit of cones, while Ben can produce 1 unit of ice cream for every 1 unit of cones. This means that Jerry has a comparative advantage in ice cream, as he can produce it with fewer resources than Ben.

Figure 3-3 Ice Cream and Cones Are Measured in Kilograms