Exhibit 2-1 John and Harry's Production Possibilities for Ironing Shirts and Typing Papers
Exhibit 2-1 shows the production possibilities for ironing shirts and typing papers for John and Harry.Each has 5 hours per week to spend on these tasks.Which of the following statements is correct?
A) John has a comparative advantage in ironing.
B) John has a comparative advantage in typing.
C) John has an absolute advantage in typing.
D) John has a comparative advantage in both ironing and typing.
E) Neither can gain from specialization and exchange.
Correct Answer:
Verified
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