Multiple Choice
Graph 3-2 These figures illustrate the production possibilities available to Amy and Jim with 8 hours of labour.
-According to Graph 3-2:
A) Amy has a comparative advantage in doughnuts, and Jim has an absolute advantage in coffee
B) Amy has a comparative advantage in doughnuts, and Jim has an absolute advantage in neither goods
C) Amy has a comparative advantage in coffee, and Jim has an absolute advantage in doughnuts
D) Amy has a comparative advantage in coffee, and Jim has an absolute advantage in neither goods
Correct Answer:
Verified
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