Suppose that in the time it takes for him to bake a cake,Bob can produce 5 pairs of jeans.In the time it takes for Joe to bake a cake,he can produce 8 pairs of jeans.In this example,who has the absolute advantage in baking a cake?
A) Joe
B) both Bob and Joe
C) Bob
D) There is insufficient information to answer this question.

Question

Quizplus · Accepted Answer

Absolute advantage refers to the ability of a party to produce a good or service more efficiently than its competitors. The information provided only discusses the opportunity cost of baking a cake in terms of producing jeans for Bob and Joe, not their efficiency or productivity in baking cakes specifically.

Suppose That in the Time It Takes for Him to Bake