Suppose Bob can produce more jeans than Joe in a day.Bob has ________ advantage over Joe in producing jeans.
A) an absolute
B) an absolute and a comparative
C) a comparative
D) neither an absolute nor a comparative

Question

Quizplus · Accepted Answer

Bob's ability to produce more jeans than Joe in a day indicates that Bob has an absolute advantage in producing jeans. Absolute advantage refers to the ability of an individual, company, or country to produce a good or service at a lower cost per unit than competitors. Comparative advantage, on the other hand, involves producing goods at a lower opportunity cost, which is not specified in the scenario provided.

Suppose Bob Can Produce More Jeans Than Joe in a Day.Bob