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Ally and Raul are chefs working in a food truck that produces only chocolate chip cookies and hot cocoa. If the opportunity cost of producing
Ally and Raul are chefs working in a food truck that produces only chocolate chip cookies and hot cocoa. If the opportunity cost of producing chocolate chip cookies is lower for Ally than for Raul, then
Question Select one:
A
Raul has an absolute advantage in the production of hot cocoa.
B
Ally has an absolute advantage in the production of chocolate chip cookies.
C
Ally has a comparative advantage in the production of chocolate chip cookies.
D
Raul has a comparative advantage in the production of hot cocoa.
E
Both C and D are correct.
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