Table 3-12

-Refer to Table 3-1.Relative to the rancher,the farmer has a comparative advantage in the production of
A) meat, but not in the production of potatoes.
B) potatoes, but not in the production of meat.
C) both meat and potatoes.
D) neither meat nor potatoes.

Question

Table 3-12
 
-Refer to Table 3-1.Relative to the rancher,the farmer has a comparative advantage in the production of
A) meat, but not in the production of potatoes. 
B) potatoes, but not in the production of meat. 
C) both meat and potatoes. 
D) neither meat nor potatoes.

Quizplus · Accepted Answer

According to Table 3-1, the farmer has a lower opportunity cost of producing potatoes compared to the rancher. This indicates that the farmer has a comparative advantage in potato production. However, the table does not provide information on the comparative advantage in meat production. Therefore, we cannot make a definitive statement about the farmer's comparative advantage in meat production.

Table 3-12 -Refer to Table 3-1.Relative to the Rancher,the Farmer Has a Rancher,the