If individual X has comparative advantage in painting and individual Y has comparative advantage in carpentry, then

Question

Quizplus · Accepted Answer

The concept of comparative advantage suggests that individuals should specialize in the activity they have the lowest opportunity cost to engage in. In this case, individual X has a lower opportunity cost (in terms of carpentry) to paint than individual Y does. Therefore, individual X should specialize in painting, and individual Y should specialize in carpentry. This will result in both individuals producing more efficiently and effectively than if they tried to split their time between both activities.

If Individual X Has Comparative Advantage in Painting and Individual