Hank requires 1 hour to cut the grass and 3 hours to clean the house. His sister Holly requires 1 hour to cut the grass and 4 hours to clean the house. Which of the following statements is true?
A) Hank has a lower opportunity cost of cutting the grass.
B) Hank has a comparative advantage in both cutting the grass and cleaning the house.
C) Hank has an absolute advantage in both cutting the grass and cleaning the house.
D) Hank and Holly both have a comparative advantage in cutting the grass.
E) Holly has a comparative advantage in cutting the grass.
Correct Answer:
Verified
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