Figure 3-4
-Refer to Figure 3-4. What does each of the two producers have a comparative advantage in?
A) Ben has a comparative advantage in beer, and Jerry has a comparative advantage in wine.
B) Ben has a comparative advantage in wine, and Jerry has a comparative advantage in beer.
C) Ben has a comparative advantage in neither good, and Jerry has a comparative advantage in wine.
D) Ben has a comparative advantage in both goods, and Jerry has a comparative advantage in neither.

Question

Figure 3-4 
-Refer to Figure 3-4. What does each of the two producers have a comparative advantage in?
A) Ben has a comparative advantage in beer, and Jerry has a comparative advantage in wine. 
B) Ben has a comparative advantage in wine, and Jerry has a comparative advantage in beer. 
C) Ben has a comparative advantage in neither good, and Jerry has a comparative advantage in wine. 
D) Ben has a comparative advantage in both goods, and Jerry has a comparative advantage in neither.

Quizplus · Accepted Answer

According to the graph, Ben has a lower opportunity cost of producing wine compared to beer, while Jerry has a lower opportunity cost of producing beer compared to wine. Therefore, Ben has a comparative advantage in wine, and Jerry has a comparative advantage in beer.

Figure 3-4 -Refer to Figure 3-4. What Does Each of the Two