-According to the above table, Alpha has comparative advantage in producing
A)pizzas.
B)donuts.
C)both pizzas and donuts.
D)neither pizzas nor donuts.

Question

-According to the above table, Alpha has comparative advantage in producing
A)pizzas. 
B)donuts. 
C)both pizzas and donuts. 
D)neither pizzas nor donuts.

Quizplus · Accepted Answer

Comparative advantage is determined by the opportunity cost of producing goods. If Alpha has a lower opportunity cost for producing pizzas compared to donuts, then it has a comparative advantage in pizzas.

-According to the Above Table, Alpha Has Comparative Advantage in Producing