Agnes Can Produce Either 1 Unit of X or 1

question 66

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

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