If Shawn can produce more donuts in one day than Sue can produce in one day, then
A)Shawn has a comparative advantage in the production of donuts.
B)Sue has a comparative advantage in the production of donuts.
C)Shawn has an absolute advantage in the production of donuts.
D)Sue has an absolute advantage in the production of donuts.

Question

Quizplus · Accepted Answer

Shawn producing more donuts in one day than Sue means Shawn has an absolute advantage in the production of donuts, as absolute advantage refers to the ability of an individual or group to carry out a particular economic activity more efficiently than another individual or group. Comparative advantage, on the other hand, involves the ability to produce a good at a lower opportunity cost, which is not determined by the information given.

If Shawn Can Produce More Donuts in One Day Than