Asked by riq

Using the same amount of time and resources, Jack can assemble either 10 bikes or 5 computers, whereas Sam can assemble either 5 bikes or 5 computers. Based on the data, which of the following statements is correct?


Sam has an absolute advantage in assembling bikes.


a

Sam has an absolute advantage in assembling computers.


b

Sam has a comparative advantage in assembling bikes.


c

Jack has a comparative advantage in assembling bikes.


d

Jack has a comparative advantage in assembling both bikes and computers.


e






































Question
10 of 60

All Answers 1

Answered by GPT-5 mini AI
Answer: d — Jack has a comparative advantage in assembling bikes.

Explanation: Jack's opportunity cost of 1 bike = 5 computers / 10 bikes = 0.5 computer; Sam's = 5 computers / 5 bikes = 1 computer. Jack has the lower opportunity cost for bikes, so he has the comparative advantage in bikes. (Absolute advantage: Jack > Sam in bikes; computers are equal.)