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Fact 2.4.1
In an eight-hour day, Andy can produce either 24 loaves of bread or 8 kilograms of butter. In an eight-hour day, Rolfe can produce either 8 loaves of bread or 8 kilograms of butter.
-Refer to Fact 2.4.1. Which one of the following statements is true?
A)Andy has an absolute advantage in butter production.
B)Rolfe has an absolute advantage in butter production.
C)Andy has a comparative advantage in bread production.
D)Andy has a comparative advantage in butter production.
E)Rolfe has a comparative advantage in bread production.

Question

Quizplus · Accepted Answer

Andy can produce more bread than Rolfe in an eight-hour day, so Andy has a comparative advantage in bread production.

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