Solve this early but correctly. And choose option with explanation and not copy paste answer Who has comparative advantage in water?BothO NeitherJillOJack

Name: Solve this early but correctly. And choose option with explanation and
Uploaded: 2022-12-02T21:52:30.000Z
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Description: Solve this early but correctly. And choose option with explanation and not copy paste answer Who has comparative advantage in water?BothO NeitherJillOJack

Answered: Who has comparative advantage in water?…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Solve this early but correctly.

And choose option with explanation and not copy paste answer

Who has comparative advantage in water?
Both
O Neither
Jill
OJack

Expert Solution

Step 1

Water produce by Jill = 6

Soda produce by Jill = 6

Water produce by Jack = 8

Soda produce by Jack = 4

Step 2

Jack is the correct answer.

Calculation:

The opportunity cost to produce Water by Jill = 8 / 4 = 2 soda

The opportunity cost to produce Water by Jack = 6 / 6 = 1 soda

Since the person who is able to produce at lower opportunity cost will have a comparative advantage. So Jack has a comparative advantage.

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