If Toni has an absolute advantage in both sewing and ironing when compared to Tom,then
A)they might benefit from trading,but we need more information to determine in which task they should specialise.
B)Toni cannot benefit from trading with Tom,but Tom can benefit from trading with Toni.
C)Tom cannot benefit from trading with Toni,but Toni can benefit from trading with Tom.
D)neither Toni nor Tom can benefit from trading with each other.
E)Toni should specialise in sewing,and Tom should specialise in ironing.

Question

Quizplus · Accepted Answer

Toni has an absolute advantage in both sewing and ironing, so they can produce both goods more efficiently than Tom. This means that they can benefit from trading with Tom, as they can specialize in producing the good that they are relatively more efficient at producing, and trade with Tom for the other good.

If Toni Has an Absolute Advantage in Both Sewing and Ironing