If Jeremy has an absolute advantage in cooking and Margaret has an absolute advantage in cleaning, then
A)Jeremy has a comparative advantage in cooking, and Margaret has a comparative advantage in cleaning
B)Jeremy has a comparative advantage in cleaning, and Margaret has a comparative advantage in cooking
C)we can conclude nothing about comparative advantage
D)Jeremy has a comparative advantage in cooking, but we can conclude nothing about Margaret
E)Margaret has a comparative advantage in cleaning, but we can conclude nothing about Jeremy

Question

Quizplus · Accepted Answer

Absolute advantage does not provide information about comparative advantage, which depends on opportunity costs.

If Jeremy Has an Absolute Advantage in Cooking and Margaret