Multiple Choice
Al and Bill are the only workers in a small factory which makes geegaws and doodads.Al can make 4 geegaws per hour or 12 doodads per hour.Bill can make 2 geegaws per hour or 8 doodads per hour.Assuming that neither of them finds one task more odious than the other,
A) Al has a comparative advantage in producing geegaws and Bill has a comparative advantage in producing doodads.
B) Bill has a comparative advantage in producing geegaws and Al has a comparative advantage in producing doodads.
C) Al has a comparative advantage in producing both geegaws and doodads.
D) Bill has a comparative advantage in producing both geegaws and doodads.
E) both have a comparative advantage in producing doodads.
Correct Answer:

Verified
Correct Answer:
Verified
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