Question
Martha and Dave like to make identical tacos and cakes. The time it takes Martha and Dave to make tacos and cakes is given in
Martha and Dave like to make identical tacos and cakes. The time it takes Martha and Dave to make tacos and cakes is given in the table below.
MarthaDaveTime to make a taco10 minutes15 minutesTime to make a cake20 minutes30 minutes
Which person has an absolute advantage in the production of tacos, and which person has an absolute advantage in the production of cakes?
Group of answer choices
Dave has an absolute advantage in producing both goods.
Neither Dave nor Martha has an absolute advantage at producing either good.
Martha has an absolute advantage in tacos; Dave has an absolute advantage in cakes.
Martha has an absolute advantage in producing both goods.
Both Martha and Dave have an absolute advantage in producing both goods.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started