Figure 3-15
Perry's Production Possibilities Frontier
Jordan's Production Possibilities Frontier
-Refer to Figure 3-15.Perry has a comparative advantage in the production of
A)novels and Jordan has a comparative advantage in the production of poems.
B)poems and Jordan has a comparative advantage in the production of novels.
C)novels and Jordan has a comparative advantage in the production of neither good.
D)neither good and Jordan has a comparative advantage in the production of novels.

Question

Figure 3-15
Perry's Production Possibilities Frontier
Jordan's Production Possibilities Frontier  
-Refer to Figure 3-15.Perry has a comparative advantage in the production of
A)novels and Jordan has a comparative advantage in the production of poems. 
B)poems and Jordan has a comparative advantage in the production of novels. 
C)novels and Jordan has a comparative advantage in the production of neither good. 
D)neither good and Jordan has a comparative advantage in the production of novels.

Quizplus · Accepted Answer

Perry has a steeper production possibilities frontier (PPF) for poems, indicating a higher opportunity cost of producing poems compared to novels. Jordan has a shallower PPF for poems, indicating a lower opportunity cost of producing poems compared to novels. Therefore, Jordan has a comparative advantage in the production of poems, while Perry has a comparative advantage in the production of novels.

Figure 3-15 Perry's Production Possibilities Frontier