Linda and Sandy own The Preppy Puppy, a dog grooming business. Table 1 lists the

Question

Linda and Sandy own The Preppy Puppy, a dog grooming business. Table 1 lists the number of dogs Linda and Sandy can each bathe and groom in one week.
Table 1

Select the statement that accurately interprets the data in the table.

A) Sandy has a comparative advantage in dog grooming.

B) Linda has a comparative advantage in dog grooming.

C) Linda has a comparative advantage in dog grooming and dog bathing.

D) Sandy has a comparative advantage in dog bathing.

Bathing

Grooming

Linda

60

20

Sandy

50

25

5

ECON101, Trimester 1 2015

14) Refer to Table 1. Select the statement that accurately interprets the data in the table.

A) Linda has an absolute advantage in dog bathing and Sandy has an absolute advantage in dog

grooming.

B) Sandy has an absolute advantage in dog bathing and Linda has an absolute advantage in dog

grooming.

C) Sandy has an absolute advantage in dog bathing and dog grooming.

D) Linda has an absolute advantage in dog bathing and dog grooming.

Bathing

Grooming

Linda

60

20

Sandy

50

25

Explanation / Answer

Answer of first question.

Here we find that sandy has to groom 25 dogs whereas Linda has only to groom, 20 dogs, that means sandy has a comparative advantage of 5 dog`s grooming over Linda.

Thus its correct answer is option (A) i.e. " Sandy has a comparative advantage in dog grooming."

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