Mac can bake more cookies than Monica per hour.It must be true that
A) Monica has an absolute advantage in cookie baking.
B) Mac has an absolute advantage in baking cookies.
C) Mac has a comparative advantage in baking cookies.
D) Monica has a comparative advantage in baking cookies.
E) Mac cannot benefit by trade between the two of them.

Question

Quizplus · Accepted Answer

Mac having the ability to bake more cookies per hour than Monica directly implies that Mac has an absolute advantage in baking cookies. Comparative advantage, on the other hand, involves the relative efficiency of producing goods considering opportunity costs, which is not directly addressed by the information given.

Mac Can Bake More Cookies Than Monica Per Hour