David takes 10 minutes to process a customer,and 20 minutes to stock the shelves.Danny takes 15 minutes to process a customer,and 15 minutes to stock the shelves.Which of the following statements is true?
A) David has an absolute advantage in performing both tasks.
B) Danny has an absolute advantage in performing both tasks.
C) David has a comparative advantage in processing customers but not in stocking shelves.
D) Danny has a comparative advantage in processing customers but not in stocking shelves.
E) Danny has a comparative advantage in processing customers and in stocking shelves.

Question

Quizplus · Accepted Answer

David has a comparative advantage in processing customers because he can do it faster than Danny (10 minutes vs. 15 minutes). However, Danny has a comparative advantage in stocking shelves because he can do it faster than David (15 minutes vs. 20 minutes).

David Takes 10 Minutes to Process a Customer,and 20 Minutes