Question

This table shows the production possibility schedule for several toothpaste companies. Toothpaste company Large tubes Small tubes Sparkling 100 per hour 200 per hour Bright White 100 per hour 250 per hour Fresh! 200 per hour 250 per hour Mmmint 150 per hour 150 per hour Which company has the comparative advantage in producing small tubes of toothpaste? Sparkling Fresh! Bright White Mmmint

Answer 1

Answer: Bright White

Based from the table, it shows that the Bright White company has the comparative advantage in producing small tubes of toothpaste for it can make 250 small tubes of toothpaste per hour as compared to other toothpaste companies. In addition, most companies that have lower opportunity cost has the most comparative advantage too.

Answer 2

Bright White(C)

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