Which of the following scenarios best illustrates the principle of comparative advantage in relation to opportunity cost, absolute advantage, and resource allocation?

Comparative advantage is when someone can produce something at a lower opportunity cost than someone else. For example, imagine two friends, Alex and Jamie. Alex can make 10 sandwiches or 5 salads in an hour, while Jamie can make 6 sandwiches or 3 salads in the same time. Although Alex has an absolute advantage in both sandwiches and salads (he can make more of each), he has a lower opportunity cost for making sandwiches, so he should focus on that. Meanwhile, Jamie should make salads because it costs him less in terms of the sandwiches he gives up, illustrating how they can both benefit by specializing and trading based on their comparative advantages.