Respuesta :
Amy has a comparative advantage in the production of houses, and Jim has a comparative advantage in the production of cheese.
The concepts of comparative advantage and opportunity cost are significant in answering this question. someone has a comparative advantage over another character if they can perform an economic interest greater efficaciously than the alternative person or at a lower possibility value. An opportunity price is a foregone benefit due to pursuing one opportunity over the opposite.
If Amy chooses to produce the best cheese, she would give up building and promoting 20 homes. Amy's possibility fee of manufacturing one pound of cheese is 0.004 units of a residence whereas the opportunity price of manufacturing one house is 250 pounds of cheese.
If Jim chooses to provide the handiest cheese, he could give up constructing and promoting 10 houses. Jim's possibility price of producing one pound of cheese is 0.002 units of a residence while the possibility fee of manufacturing one house is 500 pounds of cheese.
For the reason that Amy has a higher possibility value in generating homes and Jim has a higher possibility value in generating cheese, it is able to be inferred that: Amy has a comparative advantage in generating houses due to the fact her opportunity price is lower and Jim has a comparative advantage in producing cheese due to the fact his possibility value is lower.
Learn more about comparative advantage here brainly.com/question/4461081
#SPJ4
