Don Can Produce 10 Pens or 20 Pencils in One

question 125

Multiple Choice

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

• A)Don has an absolute advantage over Bob in the production of pencils and Bob in the production of pens
• B)Bob has an absolute advantage over Don in the production of pencils
• C)Bob has a comparative advantage over Don in the production of pens
• D)Don has a comparative advantage over Bob in the production of pens
• E)Don does not have a comparative advantage in the production of either good

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