Answer to Question #201754 in Economics of Enterprise for Ali Kilponen

Question #201754

Suppose Rockette and Zoot Horn can spend their days making cheese or planting beans. Their output per person per hour at each activity is the following:

 


Cheese

Beans

Rockette

7

160

Zoot Horn

6

120



Rockette has _____ in planting beans.

Select one:

A.

only the comparative advantage

B.

both the absolute advantage and the comparative advantage

C.

neither the absolute advantage nor the comparative advantage

D.

only the absolute advantage


1
Expert's answer
2021-06-03T13:05:51-0400

A. Only the comparative advantage

Since Rockette can make cheese at lower opportunity cost, Rockette has comparative advantage in cheese.


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