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In One Hour John Can Produce 20 Loaves of Bread

Question 57

Multiple Choice

In one hour John can produce 20 loaves of bread or 8 cakes. In one hour Phyllis can produce 30 loaves of bread or 15 cakes. Which of the following statements is true?


A) Phyllis has an absolute advantage in both goods.
B) Phyllis has a comparative advantage in producing both cakes and bread.
C) John has an absolute advantage in both goods.
D) John has a comparative advantage in producing cakes.
E) Phyllis has a comparative advantage in producing bread.

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