The table given below represents butter and ham production by two countries Norway and Sweden.Table 2.5

-A world-renowned brain surgeon can type twice as fast as her secretarial assistant. Which of the following statements is true in this situation?

Question

The table given below represents butter and ham production by two countries Norway and Sweden.Table 2.5
 
-A world-renowned brain surgeon can type twice as fast as her secretarial assistant. Which of the following statements is true in this situation?

Quizplus · Accepted Answer

The concept of comparative advantage states that a country (or in this case, an individual) should specialize in producing the good or service in which they have a lower opportunity cost, and trade with other countries (or individuals) for goods or services in which they have a higher opportunity cost. While the brain surgeon may be able to type faster, her time is better spent doing brain surgeries since she has a higher opportunity cost for typing (since she could be doing brain surgeries). Therefore, the secretary has a comparative advantage in typing and should be tasked with typing duties.

The Table Given Below Represents Butter and Ham Production by Two