Use the Following Scenario to Answer the Following Questions

question 58

Multiple Choice

Use the following scenario to answer the following questions:
Karl and Jager produce cars and trucks.Karl can produce 10 cars per hour or 5 trucks per hour.Jager can produce 12 cars per hour or 4 trucks per hour.
-Based on the scenario,which of the following is true?

• A) Jager has an absolute advantage in producing cars,but not trucks.
• B) Jager has an absolute advantage in producing trucks,but not cars.
• C) Jager has an absolute advantage in producing both goods.
• D) Jager has an absolute advantage in producing neither good.
• E) Karl has a comparative advantage in producing both goods.