Based on the table below, which of the following statements is true? The Opportunity Cost of Steel and Ketchup Opportunity cost Person Steel Bar 1 Bottle of Ketchup 1 bottle of ketchup 4 bottles of ketchup 1 steel bar Andy Henry 1/4 steel bar Both Henry and Andy have comparative advantages in producing ketchup bottles and steel bars. Henry has a comparative advantage in producing ketchup bottles, while Andy has a comparative advantage in producing steel bars. Henry has a comparative advantage in producing steel bars, while Andy has a comparative advantage in producing ketchup bottles. Neither Henry nor Andy has a comparative advantage in producing ketchup bottles or steel bars.

ECON MACRO
5th Edition
ISBN:9781337000529
Author:William A. McEachern
Publisher:William A. McEachern
Chapter2: Economic Tools And Economic Systems
Section: Chapter Questions
Problem 3.5P
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Based on the table below, which of the following statements is true?
The Opportunity Cost of Steel and Ketchup
Opportunity cost
Person
Steel Bar
1 Bottle of Ketchup
1 bottle of ketchup
4 bottles of ketchup
1 steel bar
Andy
Henry
1/4 steel bar
Both Henry and Andy have comparative advantages in producing ketchup bottles and steel bars.
Henry has a comparative advantage in producing ketchup bottles, while Andy has a comparative
advantage in producing steel bars.
Henry has a comparative advantage in producing steel bars, while Andy has a comparative advantage in
producing ketchup bottles.
Neither Henry nor Andy has a comparative advantage in producing ketchup bottles or steel bars.
Transcribed Image Text:Based on the table below, which of the following statements is true? The Opportunity Cost of Steel and Ketchup Opportunity cost Person Steel Bar 1 Bottle of Ketchup 1 bottle of ketchup 4 bottles of ketchup 1 steel bar Andy Henry 1/4 steel bar Both Henry and Andy have comparative advantages in producing ketchup bottles and steel bars. Henry has a comparative advantage in producing ketchup bottles, while Andy has a comparative advantage in producing steel bars. Henry has a comparative advantage in producing steel bars, while Andy has a comparative advantage in producing ketchup bottles. Neither Henry nor Andy has a comparative advantage in producing ketchup bottles or steel bars.
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