(Exhibit: Determining Comparative Advantage) Who Has an Absolute Advantage in Baking

question 63

Multiple Choice

(Exhibit: Determining Comparative Advantage) Who has an absolute advantage in baking cakes?
$\begin{array}{|l|l|l|}\hline & \text { Opportunity Cost of 1 Bread } & \text { Opportunity Cost of } 1 \text { Cake } \\\hline \text { Eric ( } 4 \text { loaves of bread }=2 \text { cakes }) & 1 / 2 \text { of a cake } & 2 \text { loaves of bread } \\\hline \text { Daisy }(5 \text { loaves of bread }=3 \text { cakes }) & 3 / 5 \text { of a cake } & 12 / 3 \text { loaves of bread } \\\hline\end{array}$

• A) Eric
• B) Daisy
• C) neither Eric nor Daisy
• D) both Eric and Daisy