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Question
Use the following scenario to answer the following questions:
Rosa and Dirk produce basketballs and footballs. Rosa can produce six basketballs per hour or two footballs per hour. Dirk can produce three basketballs per hour or four footballs per hour.
Based on the scenario, which of the following is true?
a. Dirk has an absolute advantage in producing basketballs, but not footballs.
b. Dirk has an absolute advantage in producing footballs, but not basketballs.
c. Dirk has an absolute advantage in producing both goods.
d. Dirk has an absolute advantage in producing neither good.
e. Rosa has a comparative advantage in producing both goods.
Answer
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Related questions
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