Question

What criteria would you use to determine which of two workers has a comparative advantage in performing a task?

Answer 1

Comparative advantage is an economic law referring to the ability of an individual or group to carry out a specific economic activity at a lower relative opportunity cost or autarky price in comparison to other economic actors. In order to determine if comparative advantages exist between the two workers, we have to figure out the opportunity cost of making one unit of one of the items. The worker who has the lowest opportunity costs of producing one unit of product has the comparative advantage and thus must specialize in performing the task