Suppose Rockette and Zoot Horn can spend their days making cheese or planting beans. Their output per person per hour at each activity is the following:
Cheese
Beans
Rockette
7
160
Zoot Horn
6
120
Rockette has _____ in planting beans.
Select one:
A.
only the comparative advantage
B.
both the absolute advantage and the comparative advantage
C.
neither the absolute advantage nor the comparative advantage
D.
only the absolute advantage
A. Only the comparative advantage
Since Rockette can make cheese at lower opportunity cost, Rockette has comparative advantage in cheese.
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