Both Bill and Mary produce t-shirts and hats. If Bill's opportunity cost of 1 t-shirt is 4 hats and Mary's opportunity cost of 1 t-shirt is 3 hats, then Mary has a comparative advantage in the production of t-shirts. Mary has a comparative advantage in the production of hats. Bill has a comparative advantage in the production of t-shirts. Bill has a comparative advantage in the production of both t-shirts and hats.

Both Bill and Mary produce t-shirts and hats. If Bill's opportunity cost of 1 t-shirt is 4 hats and Mary's opportunity cost of 1 t-shirt is 3 hats, then Mary has a comparative advantage in the production of t-shirts. Mary has a comparative advantage in the production of hats. Bill has a comparative advantage in the production of t-shirts. Bill has a comparative advantage in the production of both t-shirts and hats.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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