Berries Fish
Rob 20 80
Bill 30 60
1. Rob Crusoe and Bill Friday spent their week-long vacation on a desert island where they had to find and make their own food. Rob and Bill spent one day each fishing and picking berries. The table lists the pounds of output Rob and Bill produced.
A. Rob has an absolute advantage in picking berries and Bill has an absolute advantage in
catching fish.
B. Bill has an absolute advantage in picking berries and Rob has an absolute advantage in
catching fish.
C. Bill has an absolute advantage in picking berries and catching fish.
D. Rob has an absolute advantage in picking berries and catching fish.
2. Use the table above to select the statement that accurately interprets the data in the table.
A. Bill has a comparative advantage in catching fish.
B. Rob has a comparative advantage in picking berries.
C. Rob has a comparative advantage in catching fish and picking berries.
D. Bill has a comparative advantage in picking berries.

B. Bill has an absolute advantage in picking berries and Rob has an absolute advantage in catching fish.

D. Bill has a comparative advantage in picking berries.

Explanation:

A person has comparative advantage in production if it produces at a lower opportunity cost when compared with other people.

A person has absolute advantage in the production of a good or service If it produces more quantity of the good when compared with other people.

Rob picks 20 berries while bill picks 30. This indicates that Bill has an absolute advantage in picking berries.

Rob catches 80 fish while bill catches 60 fish. This indicates that rob has an absolute advantage in catching fish.

To determine comparative advantage, the opportunity costs have to be determined.

The opportunity cost of Rob in picking berries = 80 / 20 = 4

The opportunity cost of Rob in catching fish = 20 / 80 = 0.25

The opportunity cost of Bill in picking berries = 60 / 30 = 2

The opportunity cost of Bill in catching fish = 30 / 60 = 0.5

Bill has a comparative advantage in picking berries because his opportunity cost is lower.

Rob has a has a comparative advantage in catching fish because his opportunity cost is lower.

I hope my answer helps you

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