Consider two individuals, Bob and Jerry, who produce guitars and banjos. Bob and Jerry’s weekly productivity are shown in Table 3.3. Which of the following is true?
A. Bob has a comparative advantage in producing guitars but not banjos.
B. Bob has a comparative advantage in producing banjos but not guitars.
C. Bob has a comparative advantage in producing both goods.
D. Bob does not have a comparative advantage in producing either good.
Answer:D
Consider two individuals, Bob and Jerry, who produce guitars and banjos. Bob and Jerry’s weekly productivity are shown in Table 3.3. Which of the following is true?
A. Bob has a comparative advantage in producing guitars but not banjos. B. Bob has a comparative advantage in producing banjos but not guitars. C. Bob has a comparative advantage in producing both goods. D. Bob does not have a comparative advantage in producing either good.