Consider two individuals, Rose and Sharon, who produce fish and coconuts. Rose and Sharon’s hourly productivity are shown in Table 3.2. Which of the following is true?
A. Rose has an absolute advantage in producing coconuts but not fish.
B. Rose has an absolute advantage in producing fish but not coconuts.
C. Rose has an absolute advantage in producing both goods.
D. Rose does not have an absolute advantage in producing either good.
Answer:A
Consider two individuals, Rose and Sharon, who produce fish and coconuts. Rose and Sharon’s hourly productivity are shown in Table 3.2. Which of the following is true?
A. Rose has an absolute advantage in producing coconuts but not fish. B. Rose has an absolute advantage in producing fish but not coconuts. C. Rose has an absolute advantage in producing both goods. D. Rose does not have an absolute advantage in producing either good.