Table 7-3
Mateo and Celeste produce custom saddles and spurs.Table 7-3 lists the number of saddles and pairs of spurs Mateo and Celeste can each produce in one month.
-Refer to Table 7-3.Select the statement that accurately interprets the data in the table.
A)Celeste has a comparative advantage in making spurs.
B)Mateo has a comparative advantage in making spurs.
C)Celeste has a comparative advantage in making saddles and making spurs.
D)Neither Mateo nor Celeste has a comparative advantage in making spurs.

Question

Table 7-3
  Mateo and Celeste produce custom saddles and spurs.Table 7-3 lists the number of saddles and pairs of spurs Mateo and Celeste can each produce in one month.
-Refer to Table 7-3.Select the statement that accurately interprets the data in the table.
A)Celeste has a comparative advantage in making spurs. 
B)Mateo has a comparative advantage in making spurs. 
C)Celeste has a comparative advantage in making saddles and making spurs. 
D)Neither Mateo nor Celeste has a comparative advantage in making spurs.

Quizplus · Accepted Answer

Mateo has a comparative advantage in making spurs if he can produce them at a lower opportunity cost compared to Celeste. Comparative advantage is determined by comparing the opportunity costs of producing goods between two parties.

Table 7-3 Mateo and Celeste Produce Custom Saddles and Spurs.Table