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 banana splits.

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Eddie has a comparative advantage in producing milkshakes because he gives up fewer banana splits to produce one more milkshake compared to Tina. Eddie sacrifices 0.5 banana splits for each additional milkshake (20 banana splits / 40 milkshakes), whereas Tina sacrifices 0.53 banana splits for each additional milkshake (16 banana splits / 30 milkshakes).

If Eddie Can Produce 40 Milk Shakes or 20 Banana