Jayden can produce 10 pens or 20 pencils in one hour while Alexander can produce 15 pens or 5 pencils in one hour. Which of the following statements is correct?
A) Alexander has a comparative advantage over Jayden in the production of pencils
B) Alexander has a comparative advantage over Jayden in the production of pens
C) Jayden has a comparative advantage over Alexander in the production of pens
D) Alexander and Jayden cannot gain from specialization and exchange.
Correct Answer:
Verified
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