Tony and patty produce skis an snowboards The table show the

Tony and patty produce skis an snowboards The table show their productions possibilities per week. Each Week, Tony produces 6 snowboards and 12 skis and patty produces 3 snowboards and 6 skis. Tony\'s opportunity cost of a snowboard is skis. Patty\'s opportunity cost of a snowboard is skis. Tony has a comparative advantage in producing snowboards. Tony has a comparative advantages in producing skis.

Solution

Tony produces 6 snowboards and 12 skies.So Tony\'s opportunity costs of producing a snowboard is 12/6=2 skies.

Patty produces 3 snowboards and 6 skies. So Patty\'s opportunity costs of producing a snowboard is 6/3=2 skies.

Tony does not have comparative advantage in producing snowboard beacuse opportunity costs of producing snowboard for both people is same.So it is false.

Opportunity cost of producing skie for Tony is 6/12=1/2 snowboard.

Opportunity cost of producing skie for Patty is 3/6=1/2 snowbard,

Again opportunity costs of producing skie are equal for both, so ony does not have comparative advantage in producing skie.So it is false.