-Refer to Exhibit 2-8.Who has the comparative advantage in the production of good Y?
A) Maria
B) Maya
C) Both Maria and Maya
D) Neither Maria nor Maya

Question

-Refer to Exhibit 2-8.Who has the comparative advantage in the production of good Y?
A) Maria 
B) Maya 
C) Both Maria and Maya 
D) Neither Maria nor Maya

Quizplus · Accepted Answer

Maria has the comparative advantage in the production of good Y if she can produce it at a lower opportunity cost than Maya. Comparative advantage is determined by comparing the opportunity costs of producing goods between individuals or countries.