Asked by Ashram Maharaj on Jun 30, 2024
Verified
In a single day,George can bake 10 cakes and Greta can bake 5 cakes.We know that _____ has a(n) _____ advantage in baking cakes.
A) George;comparative
B) George;absolute
C) Greta;comparative
D) Greta;absolute
Comparative Advantage
The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than other producers.
Absolute Advantage
Refers to the capability of an entity to produce a good or service more efficiently than its competitors using the same amount of resources.
- Differentiate absolute from comparative advantage.
Verified Answer
SK
Sigrid KleiveJul 03, 2024
Final Answer :
B
Explanation :
George has an absolute advantage because he can bake more cakes than Greta in the same amount of time.
Learning Objectives
- Differentiate absolute from comparative advantage.
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