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Use the Following Scenario to Answer the Following Questions

Question 64

Multiple Choice

Use the following scenario to answer the following questions:
Karl and Jager produce cars and trucks.Karl can produce 10 cars per hour or 5 trucks per hour.Jager can produce 12 cars per hour or 4 trucks per hour.
-Based on the scenario,which of the following is true?


A) Karl has both an absolute and a comparative advantage in car production.
B) Karl has both an absolute and a comparative advantage in truck production.
C) Karl has neither an absolute nor a comparative advantage in car production.
D) Karl has neither an absolute nor a comparative advantage in truck production.
E) Jager has both an absolute and a comparative advantage in truck production.

Correct Answer:

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