If Joyce can gather 15 logs a day or catch 10 fish a day and Percy can gather five logs a day or catch five fish a day, then Percy has a comparative advantage in gathering fish.

Question

Quizplus · Accepted Answer

Comparative advantage refers to the ability to produce a particular good or service at a lower opportunity cost than other producers. In this case, Percy has a lower opportunity cost in catching fish because he can only gather five logs a day compared to Joyce's ability to gather 15 logs a day. Therefore, Percy has a comparative advantage in catching fish compared to Joyce.

If Joyce Can Gather 15 Logs a Day or Catch