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.

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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