Suppose that in the time it takes for him to bake a cake,Bob can produce 5 pairs of jeans.In the time it takes for Joe to bake a cake,he can produce 8 pairs of jeans.In this example,Bob has ________ advantage over Joe in cake baking.
A) an absolute
B) an absolute and a comparative
C) a comparative
D) neither an absolute nor a comparative

Question

Quizplus · Accepted Answer

Bob has a comparative advantage in cake baking because he can produce jeans at a lower opportunity cost than Joe. For Bob, the opportunity cost of producing a cake is lower than Joe because he only gives up producing 5 pairs of jeans, while Joe gives up producing 8 pairs of jeans to bake a cake.

Suppose That in the Time It Takes for Him to Bake