Jessica can produce 2 boats in a day or 100 umbrellas in a day. Paul can produce 3 boats in a day or 120 umbrellas in a day. This means that for every boat that Jessica produces, her opportunity cost is 50 umbrellas. For every boat Paul produces, his opportunity cost is 40 umbrellas. Which of the following best illustrates the idea of comparative advantage?
A. Paul is better at producing boats because he can produce more boats in a day.
B. Jessica produces fewer boats in a day than Paul, so she has comparative advantage in producing boats.
C. Paul is relatively better at producing boats because he gives up fewer umbrellas per boat than Jessica.
D. Jessica produces fewer umbrellas in a day than Paul, so she has comparative advantage in producing boats.
E. Paul is better at producing boats because he can produce more boats in a day.
F. Jessica produces fewer boats in a day than Paul, so she has comparative advantage in producing boats.
G. Paul is relatively better at producing boats because he gives up fewer umbrellas per boat than Jessica.
H. Jessica produces fewer umbrellas in a day than Paul, so she has comparative advantage in producing boats.
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Jessica can produce 2 boats in a day or 100 umbrellas in a day. Paul can produce 3 boats in a day or...
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