Mike can wash a car in 5 minutes and wax a car in 15 minutes. Tony can wash a car in 10 minutes and wax a car in 20 minutes. Which of the following is true?
A)Mike can wash a car faster and has comparative advantage in washing cars.
B)Mike can wax a car faster and has comparative advantage in waxing cars.
C)Tony can wash a car faster and has comparative advantage in washing cars.
D)Tony can wax a car faster and has comparative advantage in waxing cars.

Question

Mike can wash a car in 5 minutes and wax a car in 15 minutes. Tony can wash a car in 10 minutes and wax a car in 20 minutes. Which of the following is true?
A)​Mike can wash a car faster and has comparative advantage in washing cars.
B)​Mike can wax a car faster and has comparative advantage in waxing cars.
C)​Tony can wash a car faster and has comparative advantage in washing cars.
D)​Tony can wax a car faster and has comparative advantage in waxing cars.

Quizplus · Accepted Answer

Mike has a lower opportunity cost of washing cars as he can wash a car in less time compared to Tony. Therefore, Mike has a comparative advantage in washing cars.

Mike Can Wash a Car in 5 Minutes and Wax