If Eddie can produce 40 milk shakes or 20 banana splits in an hour, and Tina can produce 30 milk shakes or 16 banana splits in an hour, then Eddie has a comparative advantage in producing milk shakes.

Question

Quizplus · Accepted Answer

Eddie can produce milk shakes at a rate of 40 per hour, while Tina can only produce 30 per hour. Therefore, Eddie has a comparative advantage in producing milk shakes.

If Eddie Can Produce 40 Milk Shakes or 20 Banana