Table 1: 

 

Devon’s total production of milk

Devon’s total productio­­­­­n of ice cream

Ravi’s total production of milk

Ravi’s total production of ice cream

Devote all time to producing

Milk

150 pints of milk

0 pints of ice cream

70 pints of milk

0 pints of ice cream

Devote all time to producing ice cream

0 pints of milk

25 pints of ice cream

 0 pints of milk

10 pints of ice cream

Note: Assume that both Devon and Ravi can produce any corresponding linear combination of milk and ice cream.

Who has the comparative advantage in the production of milk?



	a.	
Devon

	b.	
Ravi

	c.	
Both 

	d.	
Neither



To determine who has the comparative advantage in the production of milk, we need to compare the opportunity costs of producing milk for both Devon and Ravi. The individual with the lower opportunity cost for producing milk has the comparative advantage.

### Step 1: Opportunity Cost for Devon
- If Devon devotes all his time to producing **milk**, he produces 150 pints of milk and 0 pints of ice cream.
- If Devon devotes all his time to producing **ice cream**, he produces 25 pints of ice cream and 0 pints of milk.

Thus, for Devon, producing 150 pints of milk costs him the production of 25 pints of ice cream. The opportunity cost of 1 pint of milk for Devon is:
\[
\text{Opportunity cost of 1 pint of milk} = \frac{25 \, \text{pints of ice cream}}{150 \, \text{pints of milk}} = \frac{1}{6} \, \text{pint of ice cream per pint of milk}.
\]

### Step 2: Opportunity Cost for Ravi
- If Ravi devotes all his time to producing **milk**, he produces 70 pints of milk and 0 pints of ice cream.
- If Ravi devotes all his time to producing **ice cream**, he produces 10 pints of ice cream and 0 pints of milk.

Thus, for Ravi, producing 70 pints of milk costs him the production of 10 pints of ice cream. The opportunity cost of 1 pint of milk for Ravi is:
\[
\text{Opportunity cost of 1 pint of milk} = \frac{10 \, \text{pints of ice cream}}{70 \, \text{pints of milk}} = \frac{1}{7} \, \text{pint of ice cream per pint of milk}.
\]

### Step 3: Comparison of Opportunity Costs
- **Devon's opportunity cost of producing 1 pint of milk**: \(\frac{1}{6}\) pint of ice cream.
- **Ravi's opportunity cost of producing 1 pint of milk**: \(\frac{1}{7}\) pint of ice cream.

Since Ravi has a lower opportunity cost (\(\frac{1}{7} < \frac{1}{6}\)), Ravi has the comparative advantage in the production of milk.

### Final Answer:
**b. Ravi**

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Would you like more details or have any questions? Here are five related questions you might find interesting:

1. What is comparative advantage and how does it affect trade?
2. What is the opportunity cost of Devon producing ice cream?
3. Who has the comparative advantage in producing ice cream?
4. How do opportunity costs help in deciding specialization in production?
5. How would you calculate absolute advantage in this scenario?

**Tip:** Comparative advantage focuses on the relative opportunity costs, not the absolute quantities produced.

Who has the comparative advantage in the production of milk?

Learn how to determine who has the comparative advantage in milk production between Devon and Ravi. This problem involves calculating opportunity costs and comparing them to identify the producer with the lowest cost. Includes step-by-step breakdowns using core concepts of comparative advantage and opportunity cost, suitable for Grades 9-12.

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