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 a comparative advantage in processing customers and in stocking shelves.
C)Danny has an absolute advantage in performing both tasks.
D)Danny has a comparative advantage in processing customers but not in stocking shelves.
E)David has a comparative advantage in processing customers but not in stocking shelves.

Question

Quizplus · Accepted Answer

David takes less time to process a customer than Danny, but takes longer to stock the shelves. Therefore, David has a comparative advantage in processing customers but not in stocking shelves. Conversely, Danny takes longer to process a customer, but takes less time to stock the shelves. Therefore, Danny has a comparative advantage in stocking shelves but not in processing customers. This makes option E the correct answer.

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