John can make pizza at a lower opportunity cost than Allen,but Allen can make more pizzas per day than John.Therefore,
A)Allen has a comparative advantage in pizza.
B)John cannot benefit from trade with Allen.
C)Allen cannot benefit from trade with John.
D)John has an absolute advantage in pizza.
E)John has a comparative advantage in pizza.

Question

Quizplus · Accepted Answer

John has a comparative advantage in pizza because he can produce it at a lower opportunity cost than Allen, even though Allen can produce more pizzas per day (absolute advantage).

John Can Make Pizza at a Lower Opportunity Cost Than