-Agnes can produce either 1 unit of X or 1 unit of Y in an hour, while Brenda can produce either 2 units of X or 4 units of Y in an hour.
A) Brenda has an absolute advantage in the production of X and Y.
B) Agnes has a comparative advantage in the production of Y.
C) Brenda has a comparative advantage in the production of X.
D) Brenda cannot gain from trade.

Question

-Agnes can produce either 1 unit of X or 1 unit of Y in an hour, while Brenda can produce either 2 units of X or 4 units of Y in an hour.
A) Brenda has an absolute advantage in the production of X and Y. 
B) Agnes has a comparative advantage in the production of Y. 
C) Brenda has a comparative advantage in the production of X. 
D) Brenda cannot gain from trade.

Quizplus · Accepted Answer

The Answer of 
-Agnes can produce either 1 unit of X or 1 unit of Y in an hour, while Brenda can produce either 2 units of X or 4 units of Y in an hour.
A) Brenda has an absolute advantage in the production of X and Y. 
B) Agnes has a comparative advantage in the production of Y. 
C) Brenda has a comparative advantage in the production of X. 
D) Brenda cannot gain from trade.

-Agnes Can Produce Either 1 Unit of X or 1