Multiple Choice
Use the information below to answer the following questions.
Fact 2.4.1
In an eight-hour day, Andy can produce either 24 loaves of bread or 8 kilograms of butter. In an eight-hour day, Rolfe can produce either 8 loaves of bread or 8 kilograms of butter.
-Refer to Fact 2.4.1. Which one of the following statements is true?
A) Andy has an absolute advantage in butter production.
B) Rolfe has an absolute advantage in butter production.
C) Andy has a comparative advantage in bread production.
D) Andy has a comparative advantage in butter production.
E) Rolfe has a comparative advantage in bread production.
Correct Answer:

Verified
Correct Answer:
Verified
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