Question #193266
Suppose a two-person household provides two products: taxi rides and meal deliveries.
Person A can provide 4 taxi rides or 2 meal deliveries in an hour.
Person B can provide 5 taxi rides or 4 meal deliveries in an hour.
Who has the absolute advantage in the provision of taxi rides? Who has the comparative advantage in the provision of taxi rides?
1-Absolute advantage: Person B
Comparative advantage: Person A
2-Absolute advantage: Person A
Comparative advantage: Person B
3-Absolute advantage: Person A
Comparative advantage: Person A
4-Absolute advantage: Person B
Comparative advantage: Person B
Expert's answer
1-Absolute advantage: Person B
Comparative advantage: Person A
