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

Question

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

Quizplus · Accepted Answer

Ben can produce more wine in a given amount of time than Jerry, so he has an absolute advantage in wine production. However, Jerry has a lower opportunity cost of producing beer, meaning he can produce it at a lower cost compared to wine than Ben can. Therefore, Jerry has a comparative advantage in beer production.

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