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.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter3: Interdependence And The Gains From Trade

Section: Chapter Questions

Problem 6CQQ

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