Shawn can produce donuts at a lower opportunity cost than Sue.Who has an absolute or a comparative advantage in the production of donuts
A)Shawn has a comparative advantage.
B)Sue has a comparative advantage.
C)Shawn has an absolute advantage.
D)Sue has an absolute advantage.

Question

Quizplus · Accepted Answer

Shawn has a comparative advantage because he can produce donuts at a lower opportunity cost than Sue. Comparative advantage is determined by opportunity cost, not absolute productivity.

Shawn Can Produce Donuts at a Lower Opportunity Cost Than