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

Question

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

Quizplus · Accepted Answer

Eric has a lower opportunity cost of 1/2 a cake per loaf of bread compared to Daisy's 3/5, indicating Eric has the comparative advantage in baking bread.

(Exhibit: Determining Comparative Advantage) Who Has a Comparative Advantage in Baking