Don can produce 10 pens or 20 pencils in one hour while Bob can produce 5 pencils or 15 pens in one hour.Which of the following statements is correct?
A)Don has an absolute advantage over Bob in the production of pencils and Bob in the production of pens
B)Bob has an absolute advantage over Don in the production of pencils
C)Bob has a comparative advantage over Don in the production of pens
D)Don has a comparative advantage over Bob in the production of pens
E)Don does not have a comparative advantage in the production of either good

Question

Quizplus · Accepted Answer

The Answer of Don can produce 10 pens or 20 pencils in one hour while Bob can produce 5 pencils or 15 pens in one hour.Which of the following statements is correct?
A)Don has an absolute advantage over Bob in the production of pencils and Bob in the production of pens
B)Bob has an absolute advantage over Don in the production of pencils
C)Bob has a comparative advantage over Don in the production of pens
D)Don has a comparative advantage over Bob in the production of pens
E)Don does not have a comparative advantage in the production of either good

Don Can Produce 10 Pens or 20 Pencils in One