If Sean can bake bread at a lower opportunity cost than Jason,and Jason can produce paintings at a lower opportunity cost than Sean,it follows that
A) Sean has a comparative advantage in paintings and Jason has a comparative advantage in baking bread.
B) Both Sean and Jason have a comparative advantage in baking bread.
C) Both Sean and Jason have a comparative disadvantage in producing paintings.
D) Sean has a comparative advantage in baking bread and Jason has a comparative advantage in producing paintings.
E) There is not enough information to answer the question.

Question

Quizplus · Accepted Answer

Comparative advantage is the ability to produce a good or service at a lower opportunity cost than another producer. In this case, Sean has a lower opportunity cost for baking bread compared to Jason, meaning he has a comparative advantage in baking bread. Conversely, Jason has a lower opportunity cost for producing paintings compared to Sean, so he has a comparative advantage in producing paintings. Therefore, the answer is D.

If Sean Can Bake Bread at a Lower Opportunity Cost