Table 3-1FarmerRancherLabour hours needed to make 1 kilogram:Meat93Potatoes34Kilograms produced in 36 hours:Meat412Refer to Table 3-1. What does each producer have an absolute or comparative advantage in?Potatoes129The farmer has an absolute advantage in potatoes, and the rancher has a comparative advantage in meat.The farmer has an absolute advantage in meat, and the rancher has a comparative advantage in potatoes.The farmer has an absolute advantage in neither good, and the rancher has a comparative advantage in potatoes.The farmer has an absolute advantage in neither good, and the rancher has a comparative advantage in meat.

Absolute advantage is the ability to produce goods and services at lower cost than the other person.…

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What does each producer have an absolute or comparative advantage in?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter33: International Trade

Section: Chapter Questions

Problem 3SCQ: In France it takes one worker to produce one sweater, and one worker to produce one bottle of wine....

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Question

Table 3-1
Farmer
Rancher
Labour hours needed to make 1 kilogram:
Meat
9
3
Potatoes
3
4
Kilograms produced in 36 hours:
Meat
4
12
Refer to Table 3-1. What does each producer have an absolute or comparative advantage in?
Potatoes
12
9
The farmer has an absolute advantage in potatoes, and the rancher has a comparative advantage in meat.
The farmer has an absolute advantage in meat, and the rancher has a comparative advantage in potatoes.
The farmer has an absolute advantage in neither good, and the rancher has a comparative advantage in potatoes.
The farmer has an absolute advantage in neither good, and the rancher has a comparative advantage in meat.

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