Use the following scenario to answer the next four questions:
RayRay and Andrew produce baseballs and golf balls. RayRay can produce six baseballs per hour or four golf balls per hour. Andrew can produce three baseballs per hour or one golf ball per hour.
-Based on the scenario,which of the following is true?
A) Andrew has an absolute advantage in producing baseballs but not golf balls.
B) Andrew has an absolute advantage in producing golf balls but not baseballs.
C) Andrew has an absolute advantage in producing both goods.
D) Andrew has an absolute advantage in producing neither good.
E) RayRay has a comparative advantage in producing both goods.
Correct Answer:
Verified
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