If Robin has an absolute advantage in both gardening and baking when compared to Robert, then
A)Robin cannot benefit by trading with Robert
B)Robin can benefit by specializing in gardening if Robert specializes in baking
C)Robin can benefit by specializing in baking if Robert specializes in gardening
D)Robin and Robert may benefit from trading, but there is insufficient information to determine who should specialize in what
E)neither Robin nor Robert can benefit from trading with the other

Question

Quizplus · Accepted Answer

Even if Robin has an absolute advantage in both tasks, they can still benefit from trade if they have different comparative advantages. Without information on their opportunity costs, we cannot determine who should specialize in what.

If Robin Has an Absolute Advantage in Both Gardening and Baking