Use the following to answer questions :
-(Table: Bongos and Frisbees) Look at the table Bongos and Frisbees. Bill and Mickey make bongos and Frisbees. Who has the comparative advantage in producing Frisbees?
A)Bill
B)Mickey
C)both
D)neither

Question

Use the following to answer questions : 
-(Table: Bongos and Frisbees) Look at the table Bongos and Frisbees. Bill and Mickey make bongos and Frisbees. Who has the comparative advantage in producing Frisbees?
A)Bill 
B)Mickey 
C)both 
D)neither

Quizplus · Accepted Answer

Mickey has a lower opportunity cost of producing Frisbees than Bill. For every bongo he produces, he gives up 1/3 of a Frisbee, whereas Bill gives up 1/2 of a Frisbee for every bongo produced. Therefore, Mickey has a comparative advantage in producing Frisbees.

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