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VladimirAG [237]
3 years ago
14

Joan spends all her time making baskets, she makes four baskets a day, while Mark makes one basket. If, instead, they spend all

day making staplers, they each make two. Who has a comparative advantage in baskets?
Social Studies
2 answers:
Viktor [21]3 years ago
4 0

Answer:

Joan

Explanation:

Comparative Advantage is an economic term which refers to a situation where a country can produce more of a particular Commodity at a lower cost.

An individual or company is said to have comparative advantage in production if they can produce more units at a reduced cost.

Joan is said to have comparative advantage of producing basket because she produces more units(4) of basket that mark(1) at a lower cost (time).

Having a comparative advantage in production of a commodity doesn't mean Joan is more skilled in making baskets.

alekssr [168]3 years ago
4 0

Answer:

Joan has comparative advantage in baskets.

Explanation:

Comparative advantage refers to the ability of an individual to manufacture a good or service at a low opportunity cost than another individual.

An individual is said to have a comparative advantage at producing something if he/she can produce it at lower cost than anyone else.

Joan has a comparative advantage in baskets because she produces four baskets in a day as compared to Mark that produces only one basket.

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