APFIVE Determining Absolute Advantage From Output
A worker can produce either 20 units of good X or 10 units of good Y per hour. Another worker can produce either 15 units of good X or 5 units of good Y per hour. Which statement accurately applies the concept of absolute advantage?
A
Absolute advantage cannot be determined from this data
B
The first worker has absolute advantage in both goods
C
The second worker has absolute advantage in good X
D
Both workers have absolute advantage in one good each
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