Al and Bill Are the Only Workers in a Small

question 8

Multiple Choice

Al and Bill are the only workers in a small factory that makes geegaws and doodads.Al can make 5 geegaws per hour or 20 doodads per hour.Bill can make 3 geegaws per hour or 6 doodads per hour.Assuming that neither of them finds one task more odious than the other,

• A)Bill has a comparative advantage in producing both geegaws and doodads.
• B)Al has a comparative advantage in producing geegaws and Bill has a comparative advantage in producing doodads.
• C)Al has a comparative advantage in producing both geegaws and doodads.
• D)Bill has a comparative advantage in producing geegaws and Al has a comparative advantage in producing doodads.
• E)both have a comparative advantage in producing doodads.

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