Asked by
Fares Huraibi
on Dec 11, 2024
Verified
Refer to Table 2-3. The rancher has a comparative advantage in
A) neither good, and the farmer has a comparative advantage in both goods.
B) both goods, and the farmer has a comparative advantage in neither good.
C) potatoes, and the farmer has a comparative advantage in meat.
D) meat, and the farmer has a comparative advantage in potatoes.
Comparative Advantage
The ability of an entity to produce goods or services at a lower opportunity cost than others.
Rancher
A person who owns or manages a ranch, where livestock such as cattle or sheep are raised.
Farmer
A person involved in farming, cultivating living beings for consumption or raw materials.
- Identify the differences between comparative advantage and absolute advantage.
- Comprehend the function of opportunity cost within economic decision-making.
Verified Answer
JE
Learning Objectives
- Identify the differences between comparative advantage and absolute advantage.
- Comprehend the function of opportunity cost within economic decision-making.