Jayden Can Produce 10 Pens or 20 Pencils in One

question 166

Multiple Choice

Jayden can produce 10 pens or 20 pencils in one hour while Alexander can produce 15 pens or 5 pencils in one hour. Which of the following statements is correct?

• A) Alexander has a comparative advantage over Jayden in the production of pencils
• B) Alexander has a comparative advantage over Jayden in the production of pens
• C) Jayden has a comparative advantage over Alexander in the production of pens
• D) Alexander and Jayden cannot gain from specialization and exchange.

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