Question

For each minute of basketball played on average, LeBron James can score 2 points or provide 1 assist to a teammate. In that same minute, his teammate Rajon Rondo can score 0.5 points or provide 0.5 assists. Which of the following statements is true?

A) LeBron James has comparative advantage providing assists because 1 is greater than 0.5.

B) Rajon Rondo is at a comparative disadvantage because 1 < 2 and 0.5 < 1.

C) Each point that LeBron James scores requires sacrificing 2 assists.

D) Rajon Rondo has comparative advantage providing assists because he gives up fewer points per assist provided.

Answer 1

Rajon Rondo has a comparative advantage in providing assists because he gives up fewer points per assist provided compared to LeBron James. the concept of comparative advantage relates to the efficiency of producing points or assists based on the opportunity cost of lost points when providing an assist.

Step-by-step explanation:

The question involves the concept of comparative advantage, which is an economic term referring to the ability of an individual or group to carry out a particular economic activity (such as producing a good or service) more efficiently than another activity. In this context, we are evaluating the efficiency of LeBron James and Rajon Rondo in terms of scoring points and providing assists in basketball per minute played. comparative advantage is determined by comparing the opportunity costs of two choices. For LeBron, the opportunity cost of one assist is two points because when he chooses to assist, he loses out on scoring two points. For Rondo, the opportunity cost of one assist is also one point (since 0.5 points are scored in the same minute he could provide 0.5 assists). Therefore, LeBron gives up more points to provide one assist than Rondo does, which means Rondo has a comparative advantage in providing assists, as he sacrifices fewer points to do so.

Therefore, the correct statement is:

• D) Rajon Rondo has comparative advantage providing assists because he gives up fewer points per assist provided.

The other statements are incorrect because they misinterpret either the definition of comparative advantage or the opportunity costs involved.