Econ 201 Lecture 4 Comparative Advantage: The Basis of ...

Arthur’s opportunity cost of shearing a sheep is 4/10=0.4 goats milked. Ben’s opportunity cost of shearing a sheep is 3/6=0.5 goats milked. It is more costly for Ben to shear a sheep than for Arthur, so Arthur has a comparative advantage in shearing sheep. Correct answer = c. Example 4.3. Arthur can milk 10 goats per hour or shear 4 sheep ... ................
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