In one hour John can produce 20 loaves of bread or 8 cakes.In one hour Phyllis can produce 30 loaves of bread or 15 cakes.Which of the following statements is true?
A) Phyllis has a comparative advantage in producing bread.
B) John has a comparative advantage in producing cakes.
C) Phyllis has an absolute advantage in both goods.
D) John has an absolute advantage in both goods.
E) Phyllis has a comparative advantage in producing both cakes and bread.
Correct Answer:
Verified
Q209: Scott and Cindy both produce only pizza
Q210: Q211: Scott and Cindy both produce only pizza Q212: If workers in Mexico produce fewer goods Q213: To achieve gains from trade,a country Q215: Specialization and trade Q216: The gains from trade include: Q217: The United States is one of the Q218: Specialization and trade make a country better Q219: In one hour John can produce 20
A) needs
A) does not benefit anyone.
B)
i.lower prices from
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