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Suppose that Alex and Brandon are trapped on a desert island where the only food available is fish and coconuts. Each of the two individuals
Suppose that Alex and Brandon are trapped on a desert island where the only food available is fish and coconuts. Each of the two individuals can spend their time catching fish or gathering coconuts. The table below shows how much of each task they could accomplish in one day if they spent the whole hour doing just that task. For example, Alex could catch 5 fish or collect 25 coconuts in one day. Alex Brandon Fish Caught 5 4 Coconuts Collected 25 16 6. According to the theory of comparative advantage, which of the following is TRUE? If Alex specializes in catching fish and Brandon specializes in collecting coconuts, then through trade, both can be made better off than if they did not specialize and trade. If Brandon specializes in catching fish and Alex specializes in collecting coconuts, then through trade, both can be made better off than if they did not specialize and trade. Alex should concentrate on both collecting fish and coconuts and should not trade with Brandon, since Brandon is less efficient. Both Alex and Brandon should concentrate only on collecting coconuts
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