Question

Rob Crusoe and Bill Friday spent their weekminuslong vacation on a desert island where they had to find and prepare their own food. Rob and Bill spent one day each fishing and picking berries. The table lists the pounds of output Rob and Bill produced. Use the table above to select the statement that accurately interprets the data in the table.

Berries Fish
Rob 20 80
Bill 20 60

a. Rob has a comparative advantage in picking berries and catching fish.
b. Rob has a comparative advantage in catching fish.
c. Bill has an absolute advantage in catching fish.
d. Bill has a comparative advantage in catching fish.

Answer 1

b. Rob has a comparative advantage in catching fish.

Step-by-step explanation:

Rob has an absolute advantage in catching fish since he can catch more fish than Bill in the same amount of time.

Neither have an absolute advantage on picking berries, since they both picked the same amount.

The opportunity cost of picking a berry for Rob and Bill are, respectively:

`R = (80)/(20)\\R= 4\ fish/berry\\B = (60)/(20)\\B= 3\ fish/berry`

Bill has a lower opportunity cost for picking berries than Rob and, therefore, Bill has a comparative advantage in picking berries.

The opportunity cost of catching a fish for Rob and Bill are, respectively:

`R = (20)/(80)\\R= 0.25\ berry/fish\\B = (20)/(60)\\B= 0.33\ berry/fish`

Rob has a lower opportunity cost for fishing than Bill and, therefore, Rob has a comparative advantage in catching fish.

The only option that fits the data is b. Rob has a comparative advantage in catching fish.