Figure 3-4
-Refer to Figure 3-4. What does each of the two producers have an absolute advantage in?
A) Ben has an absolute advantage in wine, and Jerry has an absolute advantage in neither good.
B) Ben has an absolute advantage in beer, and Jerry has an absolute advantage in wine.
C) Ben has an absolute advantage in wine, and Jerry has an absolute advantage in beer.
D) Ben has an absolute advantage in neither good, and Jerry has an absolute advantage in both goods.

Question

Figure 3-4 
-Refer to Figure 3-4. What does each of the two producers have an absolute advantage in?
A) Ben has an absolute advantage in wine, and Jerry has an absolute advantage in neither good. 
B) Ben has an absolute advantage in beer, and Jerry has an absolute advantage in wine. 
C) Ben has an absolute advantage in wine, and Jerry has an absolute advantage in beer. 
D) Ben has an absolute advantage in neither good, and Jerry has an absolute advantage in both goods.

Quizplus · Accepted Answer

Ben can produce 10 bottles of wine or 5 barrels of beer in one hour. Jerry can produce 5 bottles of wine or 5 barrels of beer in one hour. Thus, Ben has an absolute advantage in wine because he can produce more wine than Jerry in a given amount of time. Jerry has an absolute advantage in beer because he can produce the same amount of beer as Ben in a given amount of time, but can also produce wine at the same time. Therefore, the correct answer is C.

Figure 3-4 -Refer to Figure 3-4. What Does Each of the Two