Travis can mow a lawn in two hours or he can trim a tree in one hour. Ricardo can mow a lawn in three hours or he can trim a tree in two hours. a. Travis has an absolute advantage over Ricardo in trimming trees. b. Travis has a comparative advantage over Ricardo in mowing lawns. c. Ricardo has a comparative advantage over Travis in trimming trees. d. All of the above are correct.

Question

Justice Walter

Business

4 September, 22:34

Travis can mow a lawn in two hours or he can trim a tree in one hour. Ricardo can mow a lawn in three hours or he can trim a tree in two hours. a. Travis has an absolute advantage over Ricardo in trimming trees. b. Travis has a comparative advantage over Ricardo in mowing lawns. c. Ricardo has a comparative advantage over Travis in trimming trees. d. All of the above are correct.

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Answers (1)

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Cowboy · Answer 1

The correct answer to the following question will be Option A.

Explanation:

Absolute advantage analyses or monitors the obvious differences in the cost of land as well as its productivity amongst countries of the world; whereas comparative advantage calculates the differences observed in the cost of labor between nation-states. Travis may chop down a garden in 2 hours, and that he might prune a tree through one hour. Ricardo could even chop down a lawn for 3 hours, and then he can cut a tree for 2 hours. So Travis seems to have an absolute advantage surrounded by Ricardo in the chopping of trees.

Other given options are not related to the given situation. So that option A is appropriate.