This Question: 1 pt | 11 of 23 (16 complete) Jack and Sharon grow tunips and pot

Question

This Question: 1 pt | 11 of 23 (16 complete) Jack and Sharon grow tunips and potatoes. Jack has a comparative advantage in growing turnips if O A. Jack can grow more turnips than Sharon. O B. Sharon's opportunity cost of turnips is less than her opportunity cost of potatoes. O C. Jack can produce enough vegetables for himself and for Sharon. 0 D. Jack's opportunity cost of producing potatoes is greater than Sharon's opportunity cost of producing potatoes. If Jack also has an absolute advantage in growing turnips and potatoes, he will not gain from specialization and trade. B. be more productive than Sharon. O C. be a better farmer than Sharon. O D. have an equal opportunity cost in all activities. Click to select your answer 002 khalij

Explanation / Answer

Answer is D. The reason is comparative advantage of one with respect to other occurs if his opportunity cost of producing same good is less

Will be a better farmer than Sharon. Note even if he has absolute advantage greater in both goods he can gain by specialising in commodity in which it's absolute advantage is greater

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