Figure 3-2

-Refer to Figure 3-2.Ben has an absolute advantage in
A)neither good and he has a comparative advantage in neither good.
B)neither good and he has a comparative advantage in cones.
C)cones and he has a comparative advantage in cones.
D)ice cream and he has a comparative advantage in ice cream.

Question

Figure 3-2
 
-Refer to Figure 3-2.Ben has an absolute advantage in
A)neither good and he has a comparative advantage in neither good. 
B)neither good and he has a comparative advantage in cones. 
C)cones and he has a comparative advantage in cones. 
D)ice cream and he has a comparative advantage in ice cream.

Quizplus · Accepted Answer

Ben can produce more cones than Jerry and therefore has an absolute advantage in cones. He also has a comparative advantage in cones as his opportunity cost of producing cones (giving up some ice cream production) is lower than Jerry's opportunity cost of producing cones.

Figure 3-2 -Refer to Figure 3-2.Ben Has an Absolute Advantage in