If Monica has a comparative advantage in baking and George has a comparative advantage in sewing, then
A)Monica must have an absolute advantage in baking
B)Monica must have an absolute advantage in sewing
C)George must have an absolute advantage in baking
D)George must have an absolute advantage in sewing
E)we can conclude nothing about absolute advantage

Question

Quizplus · Accepted Answer

Comparative advantage only compares the opportunity cost of producing a good or service between two individuals or countries. It does not give information about absolute advantage, which is the ability to produce more of a good or service in a given amount of time or with the same amount of resources. Therefore, we cannot make any conclusion about absolute advantage in this situation.

If Monica Has a Comparative Advantage in Baking and George