Figure 3-5

-Refer to Figure 3-5.Hosne has a comparative advantage in the production of
A) purses and Merve has a comparative advantage in the production of wallets.
B) wallets and Merve has a comparative advantage in the production of purses.
C) both goods and Merve has a comparative advantage in the production of neither good.
D) neither good and Merve has a comparative advantage in the production of both goods.

Question

Figure 3-5
 
-Refer to Figure 3-5.Hosne has a comparative advantage in the production of
A) purses and Merve has a comparative advantage in the production of wallets. 
B) wallets and Merve has a comparative advantage in the production of purses. 
C) both goods and Merve has a comparative advantage in the production of neither good. 
D) neither good and Merve has a comparative advantage in the production of both goods.

Quizplus · Accepted Answer

Hosne has a lower opportunity cost of producing purses than Merve, and Merve has a lower opportunity cost of producing wallets than Hosne.

Figure 3-5 -Refer to Figure 3-5.Hosne Has a Comparative Advantage in the Comparative