Agnes Can Produce Either 1 Unit of X or 1

question 17

Multiple Choice

Agnes can produce either 1 unit of X or 1 unit of Y in an hour, while Brenda can produce either 2 units of X or 4 units of Y in an hour.

• A)Brenda has an absolute advantage in the production of X and Y.
• B)Brenda cannot gain from trade.
• C)Brenda has a comparative advantage in the production of X.
• D)Agnes has a comparative advantage in the production of Y.