Don Can Produce 10 Pens or 20 Pencils in One

question 172

Multiple Choice

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

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

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