In a week, Luke Skywalker can produce 6 lightsabers or 4 jedi gowns and Yoda can

Question

In a week, Luke Skywalker can produce 6 lightsabers or 4 jedi gowns and Yoda can produce 10 lightsabers or 6 jedi gowns. Who has a comparative advantage in producing lights sabers and who has a comparative advantage in producing jedi gowns?

Luke Skywalker has comparative advantage in producing both lighsabers and jedi gowns

Yoda has comparative advantage in producing both lighsabers and jedi gowns

Lightsabers: Luke Skywalker; jedi gowns: Yoda

Lightsabers: Yoda; jedi gowns: Luke Skywalker

Luke Skywalker has comparative advantage in producing both lighsabers and jedi gowns

Yoda has comparative advantage in producing both lighsabers and jedi gowns

Lightsabers: Luke Skywalker; jedi gowns: Yoda

Lightsabers: Yoda; jedi gowns: Luke Skywalker

Explanation / Answer

comparative advantage is when one country can produce a good for efficiently at a lower cost.

Here Luke has comparative advantage in jedi and Yoda in light sabers

formula- for lightsabers

a) opportunity cost for luke is 6/4 =1.5 which is less than that of Yedi's

Similarly for Jedi, Yedi's opportunity cost is less than that of Lukes.

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