Table 3-31

-Refer to Table 3-31. Relative to the rancher, the farmer has
A)a comparative advantage in the production of meat, because the farmer's opportunity cost of a pound of meat is lower than the rancher's opportunity cost of a pound of meat.
B)a comparative advantage in the production of potatoes, because the rancher requires less time than the farmer to produce a pound of potatoes.
C)a comparative advantage in the production of potatoes; relative to the farmer, the rancher has a comparative advantage in the production of meat.
D)an absolute advantage in the production of both meat and potatoes.

Question

Table 3-31
​ 
-Refer to Table 3-31. Relative to the rancher, the farmer has
A)a comparative advantage in the production of meat, because the farmer's opportunity cost of a pound of meat is lower than the rancher's opportunity cost of a pound of meat. 
B)a comparative advantage in the production of potatoes, because the rancher requires less time than the farmer to produce a pound of potatoes. 
C)a comparative advantage in the production of potatoes; relative to the farmer, the rancher has a comparative advantage in the production of meat. 
D)an absolute advantage in the production of both meat and potatoes.

Quizplus · Accepted Answer

The farmer has a comparative advantage in the production of potatoes if the opportunity cost of producing potatoes is lower for the farmer than for the rancher. Conversely, the rancher has a comparative advantage in meat if their opportunity cost for producing meat is lower than the farmer's.

Table 3-31 ​

Table 3-31