In one hour John can produce 20 loaves of bread or 8 cakes.In one hour Phyllis can produce 30 loaves of bread or 15 cakes.Which of the following statements is true?
A)Phyllis has an absolute advantage in both goods.
B)Phyllis has a comparative advantage in producing both cakes and bread.
C)John has a comparative advantage in producing cakes.
D)John has an absolute advantage in both goods.
E)Phyllis has a comparative advantage in producing bread.

Question

Quizplus · Accepted Answer

Phyllis can produce more of both goods in an hour than John, giving her an absolute advantage in both goods.

In One Hour John Can Produce 20 Loaves of Bread