Don can produce 10 pens or 20 pencils in 1 hour while Bob can produce 15 pens or 5 pencils in 1 hour.Which statement best describes Don's comparative advantage?

Question

Quizplus · Accepted Answer

Don has a comparative advantage in producing pencils because he can produce them at a lower opportunity cost compared to Bob. For every pen Don doesn't produce, he can produce 2 pencils, whereas Bob sacrifices 3 pens for every 5 pencils he produces.

Don Can Produce 10 Pens or 20 Pencils in 1