If Tom can wax a car in fewer hours than Jerry,then Tom definitely has
A) a comparative advantage in car waxing.
B) an absolute advantage in car waxing.
C) both a comparative and an absolute advantage in car waxing.
D) neither a comparative nor an absolute advantage in car waxing.
E) an undetermined advantage because we do not know how long it takes Tom and Jerry to wash a car.

Question

Quizplus · Accepted Answer

Tom having the ability to wax a car in fewer hours than Jerry directly indicates that Tom has an absolute advantage in car waxing, as he can complete the task more efficiently in less time. Comparative advantage, on the other hand, would require additional information about their abilities to perform other tasks to determine if they can produce a good or service at a lower opportunity cost than the other.

If Tom Can Wax a Car in Fewer Hours Than