Rhonda was her high school’s valedictorian, starred in the high school musical,

Question

Rhonda was her high school’s valedictorian, starred in the high school musical, and was an all-state athlete on the lacrosse team. She was the best employee at DiCarlo's Pizza, where she worked through high school. She is great at English, math, and music. She can do just about anything better than everyone around her. How could she possibly benefit from trading with others if she is better at nearly everything? Choose one: A. She can’t! When you’re as good as Rhonda, you can do everything for yourself and you do not need to trade with others. B. Because Rhonda is so nice, she does not want to take advantage of other people and, therefore, does not trade with them, because one person’s gain must be another person’s loss in a trade. C. Rhonda can’t trade with other people because her opportunity costs are too low for other people to gain from trading with her. D. Rhonda has an absolute advantage in just about everything, but gains from trade arise from comparative advantage, and Rhonda does not have a comparative advantage in everything.

Explanation / Answer

option D is correct

D. Rhonda has an absolute advantage in just about everything, but gains from trade arise from comparative advantage, and Rhonda does not have a comparative advantage in everything.

(She would be having different opportunity costs for performing different tasks, these opportunity costs might be lower for other persons who would have a comparative advantage in that particular task)

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