In one week, Sami can knit 5 sweaters or bake 240 cookies. In one week, Leila can knit 15 sweaters or bake 480 cookies. Which of the following is correct? Question 6 options: a) Leila has an absolute and a comparative advantage in both tasks. b) Leila has an absolute advantage in both tasks and a comparative advantage in knitting sweaters. c) Sami has an absolute advantage in both tasks and a comparative advantage in knitting sweaters. d) Sami has an absolute and a comparative advantage in both tasks. e) Sami has an absolute advantage in both tasks and a comparative advantage in baking cookies.

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ewomazinoade ewomazinoade · Answer 1 · 2021-06-18T02:41:28+02:00

Answer:

B

Explanation:

A country has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries.

A company has absolute advantage in the production of a good or service if it produces more quantity of a good when compared to other countries

Leila makes more sweaters and cookies than Sami. She has an absolute advantage

opportuntiy cost

Sami :

Sweaters = 240 / 5 = 48

cookies = 5/240 = 0.02