Question

It takes Bob 2 hours to catch 1 pound of fish. it takes Peg one hour to catch one pound of fish. Thus we can say Peg has a _______ advantage when it comes to fishing

Answer 1

A producer is said to have a competitive advantage at producing something over another person if he can produce it at a cost lower than another individual

Given that, the time required to catch one pound of fish for Bob = 2 hours

and Time required for Peg to catch one pound of fish = 1 hour

We can see that Peg is catching one pound of fish at a cost (1 hour) which is lesser than that of Bob.

Thus, we can say that Peg has a competitive advantage when it comes to fishing.

answered by: anonymous