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Raven and Drew produce baseballs and golf balls. Raven can produce six baseballs per hour or four golf balls per hour. Drew can produce three baseballs per hour or one golf ball per hour.


Based on the scenario, Raven hasA. a comparative advantage in producing both goods.B. a comparative advantage in producing golf balls, but not baseballs.C. a comparative advantage in producing neither good.D. no absolute advantage.E. a comparative advantage in producing baseballs, but not golf balls.

Respuesta :

Answer:

Option (b) is correct.

Explanation:

According to the law of comparative advantage, a country has a comparative advantage in producing a commodity if the opportunity cost of producing that commodity is lower than the other country.

Raven can produce 6 baseballs per hour or 4 golf balls per hour:

Opportunity cost of producing a baseball = 4 ÷ 6

                                                                     = 0.67 golf balls

Opportunity cost of producing a golf ball = 6 ÷ 4

                                                              = 1.5 baseballs

Drew can produce 3 baseballs per hour or 1 golf ball per hour:

Opportunity cost of producing a baseball = 1 ÷ 3

                                                                     = 0.33 golf balls

Opportunity cost of producing a golf ball = 3 ÷ 1

                                                                    = 3 baseballs

Therefore,

Raven has a comparative advantage in producing golf balls and Drew has a comparative advantage in producing baseballs.

B. a comparative advantage in producing golf balls, but not baseballs.

  • The calculation is as follows:

The country should have the comparative advantage in producing a commodity when the producing opportunity cost should be less than the other country.

Raven can produce 6 baseballs per hour or 4 golf balls per hour:

Opportunity cost of producing a baseball = 4 ÷ 6

= 0.67 golf balls

Now  

Opportunity cost of producing a golf ball = 6 ÷ 4

= 1.5 baseballs

Now

Drew can produce 3 baseballs per hour or 1 golf ball per hour:

Opportunity cost of producing a baseball = 1 ÷ 3

= 0.33 golf balls

And,  

Opportunity cost of producing a golf ball = 3 ÷ 1

= 3 baseballs

Therefore,  we can conclude that the option b is correct.

Learn more: /brainly.com/question/6201432

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