Agnes can produce either 1 unit of X or 1 unit of Y in an hour, while Brenda can produce either 2 units of X or 4 units of Y in an hour.
A) Agnes has a comparative advantage in the production of Y.
B) Brenda has a comparative advantage in the production of X.
C) Brenda cannot gain from trade.
D) Brenda has an absolute advantage over Agnes.

Question

Quizplus · Accepted Answer

The Answer of Agnes can produce either 1 unit of X or 1 unit of Y in an hour, while Brenda can produce either 2 units of X or 4 units of Y in an hour.
A) Agnes has a comparative advantage in the production of Y.
B) Brenda has a comparative advantage in the production of X.
C) Brenda cannot gain from trade.
D) Brenda has an absolute advantage over Agnes.

Agnes Can Produce Either 1 Unit of X or 1