Question

A 3-column table has 2 rows. the first column has entries sam, k c. the second column is labeled opportunity cost per tax return with entries 10 sales calls, 4 sales calls. the third column is labeled opportunity cost per sales call with entries 0.1 tax returns, 0.25 tax returns. use the production possibility schedule to complete each sentence. producers have a comparative advantage when they have a opportunity cost. has a comparative advantage in processing tax returns. has a comparative advantage in making sales calls.

Answer 1

Producers have a comparative advantage when their opportunity cost is lower. K C has a comparative advantage in processing tax returns, and Sam has a comparative advantage in making sales calls.

Step-by-step explanation:

Producers have a comparative advantage when their opportunity cost of producing a good or service is lower than that of other producers. In this case, the opportunity cost is measured in terms of what is given up to produce a certain quantity of another good or service.

To determine which producer has a comparative advantage in processing tax returns, we need to compare the opportunity cost per tax return. From the table, we can see that Sam has an opportunity cost of 10 sales calls per tax return, while K C has an opportunity cost of 4 sales calls per tax return. Therefore, K C has a comparative advantage in processing tax returns because their opportunity cost is lower.

Similarly, to determine which producer has a comparative advantage in making sales calls, we compare the opportunity cost per sales call. Sam's opportunity cost is 0.1 tax returns per sales call, while K C's opportunity cost is 0.25 tax returns per sales call. Therefore, Sam has a comparative advantage in making sales calls because his opportunity cost is lower.

Answer 2

Comparative Advantage is when the opportunity cost of producing a good or service is lower for one producer compared to others. In this case, K C has a comparative advantage in processing tax returns, while Sam has a comparative advantage in making sales calls.

Step-by-step explanation:

In this case, a producer has a comparative advantage when their opportunity cost of producing a particular good or service is lower than that of another producer. Looking at the table provided, we can see that for processing tax returns, Sam has an opportunity cost of 10 sales calls per tax return, while K C has an opportunity cost of 4 sales calls per tax return. Therefore, K C has a comparative advantage in processing tax returns.

On the other hand, for making sales calls, Sam has an opportunity cost of 0.1 tax returns per sales call, while K C has an opportunity cost of 0.25 tax returns per sales call. Therefore, Sam has a comparative advantage in making sales calls.