Tom and Jerry have two tasks to do all day: make dishes and build fences.If Tom spends all day making dishes,he will have make 16 dishes.If he instead devotes his day to building fences,Tom will build 4 fences.If Jerry spends his day making dishes,he will make 14 dishes; if he spends the day building fences,he will build 7 fences.After looking at the production possibilities for both Tom and Jerry,we can conclude that:
A) Tom has the comparative advantage in dish production.
B) Jerry has the comparative advantage in dish production.
C) Tom has the comparative advantage in fence production.
D) No comparative advantage exists.

Question

Quizplus · Accepted Answer

Tom can make 16 dishes or 4 fences, while Jerry can make 14 dishes or 7 fences. This means that Tom can make more dishes than Jerry per day, and Jerry can make more fences than Tom per day. Therefore, Tom has the comparative advantage in dish production, and Jerry has the comparative advantage in fence production.

Tom and Jerry Have Two Tasks to Do All Day