Suppose Jim and Tom can both produce baseball bats. If Jim's opportunity cost of producing baseball bats is lower than Tom's opportunity cost of producing baseball bats, then a) Jim has a comparative advantage in the production of baseball bats b) Tom has a comparative advantage in the production of baseball bats. c) Tom must have an absolute advantage in the production of baseball bats d) Jim must have an absolute advantage in the production of baseball bats

Jim has a comparative advantage in the production of baseball bats.

Explanation:

Comparative advantage is the ability of a person or business to produce a good at a lower opportunity cost than other people that are producing the same product.

Comparative advantage enables one sell a good at lower cost than others, therefore they have a higher profit margin.

In this scenario Jim and Tom can both produce baseball bats. Jim's opportunity cost of producing baseball bats is lower than Tom's opportunity cost of producing baseball bats.

So since Jim's opportunity cost is lower than Tom's he has comparative advantage producing baseball bats.

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