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)Margaret has a comparative advantage in cleaning,but we can conclude nothing about Jeremy.
D)Jeremy has a comparative advantage in cooking,but we can conclude nothing about Margaret.
E)we can conclude nothing about comparative advantage.

Question

Quizplus · Accepted Answer

Having an absolute advantage in a task does not directly inform us about comparative advantage. Comparative advantage considers the opportunity cost of performing one task over another, which requires more information than just knowing who is absolutely better at a specific task.

If Jeremy Has an Absolute Advantage in Cooking and Margaret