Tom and Jerry Have One Day to Work, but Two

question 106

Multiple Choice

Tom and Jerry have one day to work, but two tasks to focus on: building chairs and tables. If Tom spends all day building chairs, he will make 16 chairs. If he instead devotes his day to building tables, Tom will make 4 tables. If Jerry spends his day building chairs, he will make 14 chairs; if he spends the day building tables, he will make 7 tables. Because Tom has a _____ opportunity cost for one table compared to Jerry, we know Tom has _____.

• A) higher; a comparative advantage at producing tables
• B) lower; a comparative advantage at producing tables
• C) similar; no advantage at producing either good
• D) higher; a comparative advantage at producing chairs

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