Table 3-3

-Refer to Table 3-3.What does each of the two producers have a comparative or absolute advantage in?
A)Helen has a comparative advantage in quilts, and Carolyn has an absolute advantage in neither good.
B)Helen has a comparative advantage in dresses, and Carolyn has an absolute advantage in quilts.
C)Helen has a comparative advantage in quilts, and Carolyn has an absolute advantage in dresses.
D)Helen has a comparative advantage in dresses, and Carolyn has an absolute advantage in both goods.

Question

Table 3-3
 
-Refer to Table 3-3.What does each of the two producers have a comparative or absolute advantage in?
A)Helen has a comparative advantage in quilts, and Carolyn has an absolute advantage in neither good. 
B)Helen has a comparative advantage in dresses, and Carolyn has an absolute advantage in quilts. 
C)Helen has a comparative advantage in quilts, and Carolyn has an absolute advantage in dresses. 
D)Helen has a comparative advantage in dresses, and Carolyn has an absolute advantage in both goods.

Quizplus · Accepted Answer

Comparative advantage is determined by who has the lower opportunity cost for producing a good. Absolute advantage is determined by who can produce more of a good with the same resources. The statement suggests Helen has a comparative advantage in quilts, and Carolyn has no absolute advantage in either good.

Table 3-3 -Refer to Table 3-3.What Does Each of the Two Producers