According to table 11 which location has a comparative advan

According to table 1.1, which location has a comparative advantage in the production of a lobster dinner? For each location, the table has the labor hours required to produce one unit. Red Pants Cape Cod 2 5 Select one: O a. Cape Cod Ob. Nantucket c. neither Cape Cod nor Nantucket d, more information is needed O

Solution

Cape cod

2 lobster dinner=6 red pants

1 lobster dinner=3 red pants

Nantucket

1 lobster dinner =5 red pants.

Since,cape cod has lower opportunity cost in the production of lobster dinner(It has to give up less red pants for one more unit of lobster dinner),cape cod has a comparative advantage in lobster dinner production.

Answer-Cape cod.