If John can produce 10 chairs or 20 lamps during a week while Mary can produce 12 chairs or 22 lamps in the same time,who has the absolute advantage in producing each good?
A) Mary in producing both goods
B) John in producing both goods
C) Mary in producing chairs, John in producing lamps
D) John in producing chairs, Mary in producing lamps
E) Both Mary and John in both goods

Question

Quizplus · Accepted Answer

Mary has the absolute advantage in producing both goods because she can produce more of each good (12 chairs and 22 lamps) in a week compared to John (10 chairs and 20 lamps).

If John Can Produce 10 Chairs or 20 Lamps During