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. After looking at the production possibilities for both Tom and Jerry, what can we conclude?
A) Tom has a comparative advantage at producing chairs.
B) Jerry has a comparative advantage at producing chairs.
C) Tom has a comparative advantage at producing tables.
D) Neither Tom nor Jerry has a comparative advantage at producing either good.
Correct Answer:

Verified
Correct Answer:
Verified
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