Joan spends all her time making baskets, she makes four baskets a day, while Mark makes one basket. If, instead, they spend all day making staplers, they each make two. Who has a comparative advantage in baskets?

Joan

Explanation:

Comparative Advantage is an economic term which refers to a situation where a country can produce more of a particular Commodity at a lower cost.

An individual or company is said to have comparative advantage in production if they can produce more units at a reduced cost.

Joan is said to have comparative advantage of producing basket because she produces more units(4) of basket that mark(1) at a lower cost (time).

Having a comparative advantage in production of a commodity doesn't mean Joan is more skilled in making baskets.

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