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algol13
3 years ago
5

You and your neighbor pick apples and cherries. If you can pick apples at a lower opportunity cost than your​ neighbor, which of

the following statements is​ true? A. You can trade some of your apples for some of your​ neighbor's cherries, and both of you will end up with more of both fruit. B. Your neighbor is better off specializing in picking cherries. C. You have a comparative advantage in picking apples. D. All of the above.
Social Studies
1 answer:
myrzilka [38]3 years ago
4 0

Answer:

C. You have a comparative advantage in picking apples

Explanation:

Opportunity cost is the cost of next best alternative foregone while chosing am alternative.

Comparative Advantage refers to when one can do a task with less opportunity cost (other output / task sacrificed).

Opportunity cost of apples picked is the cherries sacrifised . If 'I' can pick apples at lower opportunity cost (sacrifising lesser cherries), i am more efficient in picking apples . So, I have Comparitive advantage in apple picking, than my neighbour .

There is no sufficient information about my neighbour's opportunity cost of picking cherries and his/ her comparitive advantage in that . And apple cherry trade between me & my neighbour will also be based on his / her comparitive advantage also. So that also can't be determined .

Only my comparative advantage in apples is surely determined .

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