-Refer to Exhibit 2-9.Who has the comparative advantage in the production of good B?
A) Alex
B) Adam
C) Both Alex and Adam
D) Neither Alex nor Adam

Question

-Refer to Exhibit 2-9.Who has the comparative advantage in the production of good B?
A) Alex 
B) Adam 
C) Both Alex and Adam 
D) Neither Alex nor Adam

Quizplus · Accepted Answer

Alex has the comparative advantage in the production of good B because he can produce it at a lower opportunity cost compared to Adam. Comparative advantage is determined by who can produce a good at a lower opportunity cost, not necessarily at a higher quantity.