Jane can produce 50 pizzas or 100 hamburgers per day,while Sam can produce 30 pizzas or 90 hamburgers per day.Jane has an absolute advantage in the production of
A) pizzas,but not hamburgers,and has a comparative advantage in the production of pizzas.
B) hamburgers,but not pizzas,and has a comparative advantage in the production of hamburgers.
C) hamburgers and pizzas,as well as a comparative advantage in the production of hamburgers.
D) hamburgers and pizzas,as well as a comparative advantage in the production of pizzas.
E) hamburgers and pizzas,as well as a comparative advantage in the production of hamburgers and pizzas.

Question

Quizplus · Accepted Answer

Jane has an absolute advantage in both pizzas (50 vs 30) and hamburgers (100 vs 90). She has a comparative advantage in pizzas because her opportunity cost for pizzas (2 hamburgers per pizza) is lower than Sam's (3 hamburgers per pizza).

Jane Can Produce 50 Pizzas or 100 Hamburgers Per Day,while