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Dmitry [639]
3 years ago
9

The table below represents the output of Poems and TV Commercials per day by two​ authors: Krystal or​ Mark:

Business
1 answer:
k0ka [10]3 years ago
3 0

Answer:

C. Mark has a comparative advantage in writing TV commercials and Krystal has a comparative advantage in writing poems.

Explanation:

Mark has absolute advantage in both as it can outproduce Krystal in both, ppoems and TB commercials

now, referring to comparative advantage:

Mark opportunity cost for TV comm: 12/4 = 3

Krystal opportunity cost for TV comm: 8/2 = 4

It has comparative advantage doing TV comm as it renounce to less poems

Mark opportunity cost for poems: 4/12 = 1/3

Krystal opportunity cost for poems: 2/8 = 1/4

Krystal has a comparative advantajge as it renounce to a quarter of TB commercial per poem while Mark to a third

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3 years ago
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3 years ago
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3 0
3 years ago
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