Let's solve the problem step by step: ### **Step 1: Understanding Comparative Advantage** Comparative advantage is when a person can produce a good at a lower opportunity cost than another person. ### **Step 2: Find Opportunity Cost** We need to calculate the opportunity cost for both Bill and Melinda for both tasks. #### **For Bill:** - **Web pages designed:** 3 per week - **Apps created:** 12 per week **Opportunity cost for Bill:** - To design 1 web page, Bill gives up creating \( \frac{12}{3} = 4 \) apps. - To create 1 app, Bill gives up designing \( \frac{3}{12} = 0.25 \) web pages. #### **For Melinda:** - **Web pages designed:** 2 per week - **Apps created:** 4 per week **Opportunity cost for Melinda:** - To design 1 web page, Melinda gives up creating \( \frac{4}{2} = 2 \) apps. - To create 1 app, Melinda gives up designing \( \frac{2}{4} = 0.5 \) web pages. ### **Step 3: Compare Opportunity Costs** - **Web pages:** Bill's opportunity cost is 4 apps, Melinda's is 2 apps. - **Lower opportunity cost:** Melinda (2 < 4) - **Apps:** Bill's opportunity cost is 0.25 web pages, Melinda's is 0.5 web pages. - **Lower opportunity cost:** Bill (0.25 < 0.5) ### **Step 4: Conclusion** - **Melinda has a comparative advantage in designing web pages.** - **Bill has a comparative advantage in creating apps.** ### **Final Answer** **Melinda has a comparative advantage in:** - **designing web pages** So, the correct answer is: **O designing web pages**

Let's analyze why the other options are incorrect, based on the concept of comparative advantage: ### **Option 1: "Designing web pages" (Correct answer)** - **Correct because:** Melinda has a lower opportunity cost for designing web pages (2 apps vs. Bill's 4 apps). - **Therefore:** Melinda should specialize in web page designing. --- ### **Option 2: "Creating apps"** - **Why it's incorrect:** - Bill has a lower opportunity cost for creating apps (0.25 web pages vs. Melinda's 0.5 web pages). - **Thus:** Bill has a comparative advantage in creating apps, not Melinda. ### **Option 3: "Both designing web pages and creating apps"** - **Why it's incorrect:** - Neither person has a comparative advantage in both tasks; each has a comparative advantage in different tasks. - Specialization based on comparative advantage suggests each should focus on the tasks where they have the lower opportunity cost, not both. ### **Option 4: "Neither designing web pages nor creating apps"** - **Why it's incorrect:** - Both have clear comparative advantages in specific tasks, meaning specialization is beneficial. - Therefore, it's incorrect to say neither should specialize. --- ### **Summary:** - Melinda's opportunity cost for web pages is lower → she should specialize in web page designing. - Bill's opportunity cost for creating apps is lower → he should specialize in creating apps. - Other options ignore these comparative advantages, making them incorrect. **Final note:** The correct choice is **"designing web pages"**, which aligns with Melinda's comparative advantage.