Jessica can produce boats in a day or umbrellas in a day. paul can produce boats in a day or umbrellas in a day. this means that for every boat that jessica produces, her opportunity cost is umbrellas. for every boat paul produces, his opportunity cost is umbrellas. which of the following best illustrates the idea of comparative advantage? c
a) jessica produces fewer boats in a day than paul, so she has comparative advantage in producing boats. a jessica produces fewer boats in a day than paul, so she has comparative advantage in producing boats.
b) paul is relatively better at producing boats because he gives up fewer umbrellas per boat. b paul is relatively better at producing boats because he gives up fewer umbrellas per boat. (choice
c) paul is better at producing boats because he can produce more boats in a day. c paul is better at p
d) Paul has a comparative advantage in producing boats, while Jessica has a comparative advantage in producing umbrellas.
