If Kami can produce 40 tablets or 30 radios during a month's time, while Sally can produce 10 tablets or 20 radios, then it is correct to state that
A) Kami has a comparative advantage in producing tablets.
B) Kami has a comparative advantage in producing both tablets and radios.
C) Sally has a comparative advantage in producing both tablets and radios.
D) Sally has an absolute advantage in tablets.

Question

Quizplus · Accepted Answer

Kami can produce 4 tablets for every 3 radios, while Sally can only produce 1 tablet for every 2 radios. Therefore, Kami has a comparative advantage in producing tablets, while Sally has a comparative advantage in producing radios. The other options are not correct based on the given information.

If Kami Can Produce 40 Tablets or 30 Radios During