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Don Can Produce 10 Pens or 20 Pencils in One

Question 2

Multiple Choice

Don can produce 10 pens or 20 pencils in one hour, while Bob can produce 5 pencils or 15 pens in one hour. Which of the following statements is correct?


A) Bob has an absolute advantage in the production of pencils.
B) Bob has an absolute advantage in the production of pens.
C) Bob has a comparative advantage in the production of pencils.
D) Don has a comparative advantage in the production of pens.
E) Don does not have a comparative advantage in the production of either good.

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