Question

If your friend Mariana can wash dishes faster than you can and type papers better than you can, then.

Responses:
A.) Mariana has an absolute advantage in both dishwashing and paper typing
B.) Mariana could never gain from specializing and trading one of these services with you
C.) Mariana will benefit from trading with you, but you would gain no benefits from trade
D.) Mariana has a comparative advantage in both dishwashing and paper typing

Answer 1

D.) Mariana has a comparative advantage in both dishwashing and paper typing. This is because comparative advantage refers to the ability to produce a good or service at a lower opportunity cost than another person or country. In this scenario, Mariana is more efficient at both dishwashing and paper typing, meaning she can produce those goods at a lower opportunity cost than her friend. Therefore, Mariana has a comparative advantage in both tasks.