Mana has a comparative advantage in baking cakes. This means that she
A)produces better-quality cakes than any other cake baker.
B)has more education than other cake bakers.
C)can bake a cake using fewer resources than any other baker.
D)gives up less to bake a cake than other bakers give up to bake a cake.

Question

Quizplus · Accepted Answer

Comparative advantage refers to the ability to produce a good at a lower opportunity cost than others. Mana gives up less to bake a cake compared to others, indicating her comparative advantage.

Mana Has a Comparative Advantage in Baking Cakes