If Tom can produce 20 multiple choice questions or 30 true/false questions in an hour,and Mary can produce 15 multiple choice questions or 15 true/false questions in an hour,then Mary has a comparative advantage in writing true/false questions.

Question

Quizplus · Accepted Answer

Comparative advantage is determined by who has the lower opportunity cost in producing a good. Tom's opportunity cost for producing one multiple choice question is 1.5 true/false questions (30/20), while Mary's opportunity cost for producing one multiple choice question is 1 true/false question (15/15). Therefore, Tom has a lower opportunity cost for producing true/false questions (since he sacrifices fewer multiple choice questions to produce one more true/false question), indicating that Mary does not have a comparative advantage in writing true/false questions.

If Tom Can Produce 20 Multiple Choice Questions or 30