Question

using comparative advantage
production possibility schedule
violins made per week
guitars made per week
annies music
2
10
the music factory
20
20
annies music has the comparative advantage in making guitars.
has the comparative advantage in making violins.
annies music
the music factory

Explanation:

Step1: Calculate opportunity - cost of guitars for Annie's Music

The opportunity - cost of 1 guitar for Annie's Music is $\frac{2}{10}=0.2$ violins.

Step2: Calculate opportunity - cost of guitars for The Music Factory

The opportunity - cost of 1 guitar for The Music Factory is $\frac{20}{20}=1$ violin.
Since $0.2<1$, Annie's Music has a lower opportunity - cost in making guitars, so it has the comparative advantage in making guitars.

Step3: Calculate opportunity - cost of violins for Annie's Music

The opportunity - cost of 1 violin for Annie's Music is $\frac{10}{2}=5$ guitars.

Step4: Calculate opportunity - cost of violins for The Music Factory

The opportunity - cost of 1 violin for The Music Factory is $\frac{20}{20}=1$ guitar.
Since $1 < 5$, The Music Factory has a lower opportunity - cost in making violins, so it has the comparative advantage in making violins.

Answer:

The Music Factory