Table 3-8
Assume that Huang and Min can switch between producing parasols and producing porcelain plates at a constant rate.

-Refer to Table 3-8.Min has an absolute advantage in the production of
A) plates and a comparative advantage in the production of plates.
B) parasols and a comparative advantage in the production of plates.
C) neither good and a comparative advantage in the production of parasols.
D) neither good and a comparative advantage in the production of plates.

Question

Table 3-8
Assume that Huang and Min can switch between producing parasols and producing porcelain plates at a constant rate.
 
-Refer to Table 3-8.Min has an absolute advantage in the production of
A) plates and a comparative advantage in the production of plates. 
B) parasols and a comparative advantage in the production of plates. 
C) neither good and a comparative advantage in the production of parasols. 
D) neither good and a comparative advantage in the production of plates.

Quizplus · Accepted Answer

Min has an absolute advantage in the production of plates because he can produce more plates than parasols in the same amount of time. He also has a comparative advantage in the production of plates because he can produce plates at a lower opportunity cost than parasols.

Table 3-8 Assume That Huang and Min Can Switch Between Producing Parasols