Consider two individuals, Rose and Sharon, who produce fish and coconuts. Rose and Sharon’s hourly productivity are shown in Table 3.2. Which of the following is true?
A. Rose has a comparative advantage in producing coconuts but not fish.
B. Rose has a comparative advantage in producing fish but not coconuts.
C. Rose has a comparative advantage in producing both goods.
D. Rose does not have a comparative advantage in producing either good.
Answer:A
Consider two individuals, Rose and Sharon, who produce fish and coconuts. Rose and Sharon’s hourly productivity are shown in Table 3.2. Which of the following is true?
A. Rose has a comparative advantage in producing coconuts but not fish. B. Rose has a comparative advantage in producing fish but not coconuts. C. Rose has a comparative advantage in producing both goods. D. Rose does not have a comparative advantage in producing either good.