Scenario: There are two workers in a factory that produces two goods, Good X and Good Y. Worker 1 adds a value of $200 per hour in the production of Good X and a value of $100 per hour in the production of Good Y. Worker 2 adds a value of $125 per hour in the production of Good X and a value of $87.50 per hour in the production of Good Y.
-Refer to the scenario above.Which of the following is true in this case?
A) Worker 1 has a comparative advantage in the production of Good X.
B) Worker 2 has a comparative advantage in the production of Good X.
C) Worker 1 has an absolute advantage only in the production of Good Y.
D) Worker 2 has an absolute advantage in the production of both goods.
Correct Answer:
Verified
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