When Mateo and Sophia produce efficiently and make a mutually beneficial trade based on comparative advantage,

Question

a. Mateo and Sophia both wash more.
b. Mateo mows more and Sophia washes more.
c. Mateo and Sophia both mow more.
d. Mateo washes more and Sophia mows more.

Answer 1

When Mateo and Sophia produce efficiently and make a mutually beneficial trade based on comparative advantage, the correct answer is:

b. Mateo mows more and Sophia washes more.

This outcome arises because each person specializes in the task in which they have a comparative advantage, leading to increased overall production and efficiency.