Table 3-31

-Refer to Table 3-31. Relative to the rancher, the farmer has a comparative advantage in the production of
A)meat, but not in the production of potatoes.
B)potatoes, but not in the production of meat.
C)both meat and potatoes.
D)neither meat nor potatoes.

Question

Table 3-31
​ 
-Refer to Table 3-31. Relative to the rancher, the farmer has a comparative advantage in the production of
A)meat, but not in the production of potatoes. 
B)potatoes, but not in the production of meat. 
C)both meat and potatoes. 
D)neither meat nor potatoes.

Quizplus · Accepted Answer

The table shows that the farmer has a lower opportunity cost of producing potatoes compared to the rancher. This means that the farmer has a comparative advantage in producing potatoes. However, the table also shows that both the farmer and the rancher have the same opportunity cost of producing meat. Therefore, neither has a comparative advantage in producing meat.

Table 3-31 ​

Table 3-31