Table 3-4
Brenda and Eric run a business that involves setting up and testing computers. The following table applies.

-Refer to Table 3-4.Which of the following statements is correct?
A)Brenda has an absolute advantage, and Eric has a comparative advantage, in setting up computers.
B)Eric has an absolute advantage, and Brenda has a comparative advantage, in setting up computers.
C)Brenda has an absolute advantage and a comparative advantage in setting up computers.
D)Eric has an absolute advantage and a comparative advantage in setting up computers.

Question

Table 3-4
Brenda and Eric run a business that involves setting up and testing computers. The following table applies.
 
-Refer to Table 3-4.Which of the following statements is correct?
A)Brenda has an absolute advantage, and Eric has a comparative advantage, in setting up computers. 
B)Eric has an absolute advantage, and Brenda has a comparative advantage, in setting up computers. 
C)Brenda has an absolute advantage and a comparative advantage in setting up computers. 
D)Eric has an absolute advantage and a comparative advantage in setting up computers.

Quizplus · Accepted Answer

Brenda has an absolute advantage in setting up computers because she can set up more computers per hour than Eric. She also has a comparative advantage in setting up computers because she can set up computers at a lower opportunity cost than Eric.

Table 3-4 Brenda and Eric Run a Business That Involves Setting Up