Create a short dialogue of selkirk and pirate jack calculating their opportunity costs to determine their comparative advantage. then write one or two sentences explaining why pirate jack has a comparative advantage in gathering turnips and selkirk has a comparative advantage in digging clams. use the terms comparative advantage and opportunity cost.

Opportunity cost is the cost of the lost alternative. It can be calculated by,

The country which has a lower opportunity cost is said to have a comparative advantage in producing a good.

In this case,

The opportunity cost of producing Turnip for the two producers is,

For selkirk- 1 Clam

For Pirate Jack- Clam

While, the opportunity cost of producing Clam for the two is given by,

For selkirk- 1 Turnip

For Pirate Jack- Turnips

Therefore, as can be seen the opportunity cost of producing Turnip is lower for Pirate Jack. So, Pirate Jack has a comparative advantage in Turnips.

While, Selkirk has a lower opportunity cost in digging clams so, it has a comparative advantage in Clams.

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answer; signaling;