Table 2-3

Table 2-3 shows the output per week of two jewelers, Serena and Haley. They can either devote their time to making bracelets or making necklaces.
-Refer to Table 2-3.Which of the following statements is true?
A) Haley has a comparative advantage in making both products.
B) Serena has a comparative advantage in making both products.
C) Haley has a comparative advantage in making bracelets and Serena in making necklaces.
D) Haley has a comparative advantage in making necklaces and Serena in making bracelets.

Question

Table 2-3
  
Table 2-3 shows the output per week of two jewelers, Serena and Haley. They can either devote their time to making bracelets or making necklaces.
-Refer to Table 2-3.Which of the following statements is true?
A) Haley has a comparative advantage in making both products. 
B) Serena has a comparative advantage in making both products. 
C) Haley has a comparative advantage in making bracelets and Serena in making necklaces. 
D) Haley has a comparative advantage in making necklaces and Serena in making bracelets.

Quizplus · Accepted Answer

Comparative advantage is determined by who has the lower opportunity cost for producing each product. Without the table, we assume that Haley has a lower opportunity cost for bracelets and Serena for necklaces.

Table 2-3 Table 2-3 Shows the Output Per Week of Two Jewelers