Table 3-25
Assume that Maya and Miguel can switch between producing mixers and producing toasters at a constant rate.

-Refer to Table 3-25. Maya has an absolute advantage in the production of
A)both goods and a comparative advantage in the production of mixers.
B)both goods and a comparative advantage in the production of toasters.
C)neither good and a comparative advantage in the production of mixers.
D)neither good and a comparative advantage in the production of toasters.

Question

Table 3-25
Assume that Maya and Miguel can switch between producing mixers and producing toasters at a constant rate.
​ 
-Refer to Table 3-25. Maya has an absolute advantage in the production of
A)both goods and a comparative advantage in the production of mixers. 
B)both goods and a comparative advantage in the production of toasters. 
C)neither good and a comparative advantage in the production of mixers. 
D)neither good and a comparative advantage in the production of toasters.

Quizplus · Accepted Answer

Maya has an absolute advantage in both goods if she can produce more of both goods than others. She has a comparative advantage in mixers if her opportunity cost of producing mixers is lower than others.

Table 3-25 Assume That Maya and Miguel Can Switch Between Producing Mixers