stans sporting goods is a competitor that can manufacture seven soccer balls out of a possible ten, if it…

stans sporting goods is a competitor that can manufacture seven soccer balls out of a possible ten, if it makes one soccer net. which statement correctly compares the two businesses?\nsabrinas soccer has a comparative advantage over stans sporting goods because sabrinas soccer has a lower opportunity cost.\nstans sporting goods has a comparative advantage over sabrinas soccer because stans sporting goods has a lower opportunity cost.\nsabrinas soccer has an absolute advantage over stans sporting goods because sabrinas soccer has a lower production cost.\nstans sporting goods has an absolute advantage over sabrinas soccer because stans sporting goods has a lower production cost.

stans sporting goods is a competitor that can manufacture seven soccer balls out of a possible ten, if it makes one soccer net. which statement correctly compares the two businesses?\nsabrinas soccer has a comparative advantage over stans sporting goods because sabrinas soccer has a lower opportunity cost.\nstans sporting goods has a comparative advantage over sabrinas soccer because stans sporting goods has a lower opportunity cost.\nsabrinas soccer has an absolute advantage over stans sporting goods because sabrinas soccer has a lower production cost.\nstans sporting goods has an absolute advantage over sabrinas soccer because stans sporting goods has a lower production cost.

Answer

Brief Explanations:

Comparative - advantage is determined by lower opportunity - cost. Absolute advantage is about higher production capacity or lower production cost. Since we are comparing opportunity - cost here, we need to calculate opportunity - cost for both. Given Stan's can make 7 soccer balls if it makes 1 soccer net, its opportunity cost of 1 net is 7 balls. If Sabrina's has a lower opportunity cost for making nets or balls, it has a comparative advantage. Without Sabrina's data in the question, we assume based on the options that if Sabrina's has a lower opportunity cost, it has a comparative advantage.

Answer:

Sabrina's Soccer has a comparative advantage over Stan's Sporting Goods because Sabrina's Soccer has a lower opportunity cost.