(Exhibit: Determining Comparative Advantage) Eric has a lower opportunity cost for:
$\begin{array}{|l|l|l|}
\hline & \text { Opportunity Cost of 1 Bread } & \text { Opportunity Cost of } 1 \text { Cake } \
\hline \text { Eric ( } 4 \text { loaves of bread }=2 \text { cakes }) & 1 / 2 \text { of a cake } & 2 \text { loaves of bread } \
\hline \text { Daisy }(5 \text { loaves of bread }=3 \text { cakes }) & 3 / 5 \text { of a cake } & 12 / 3 \text { loaves of bread } \
\hline
\end{array}$
A) baking bread.
B) baking a cake.
C) neither bread nor cake.
D) both bread and cake.

Question

(Exhibit: Determining Comparative Advantage) Eric has a lower opportunity cost for:
 $\begin{array}{|l|l|l|}
\hline & \text { Opportunity Cost of 1 Bread } & \text { Opportunity Cost of } 1 \text { Cake } \
\hline \text { Eric ( } 4 \text { loaves of bread }=2 \text { cakes }) & 1 / 2 \text { of a cake } & 2 \text { loaves of bread } \
\hline \text { Daisy }(5 \text { loaves of bread }=3 \text { cakes }) & 3 / 5 \text { of a cake } & 12 / 3 \text { loaves of bread } \
\hline
\end{array}$
A) baking bread.
B) baking a cake.
C) neither bread nor cake.
D) both bread and cake.

Quizplus · Accepted Answer

Eric has a lower opportunity cost for baking bread because he only gives up 1/2 of a cake for each loaf of bread, whereas Daisy gives up 3/5 of a cake for each loaf of bread.

(Exhibit: Determining Comparative Advantage) Eric Has a Lower Opportunity Cost