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Mark can produce 50 baseballs in a month and Katie can produce 60 baseballs in a month. Also, Mark can produce 40 bats in a month and Katie can produce 30 bats in a month. ______________has the absolute advantage in the production of bats, and _____________ has the comparative advantage in the production of bats. Group of answer choices

Respuesta :

Answer:

Mark has the absolute advantage in the production of bats.

Mark has the comparative  advantage in the production of bats

Explanation:

The absolute advantage is a principle in which  a party is able to produce a good more efficiently than the others. In this situation, Mark can produce 40 bats while Katie can produce 30 bats which indicates that Mark can produce them more efficiently having an absolute advantage in the production of bats.

The comparative advantage is a principle in which a party has the ability to produce a good at a lower opportunity cost than others. In this situation:

                 Baseballs     Bats

Mark                50            40

Katie                60            30

The opportunity cost for Mark of producing 1 bat is producing 1.25 baseballs and the opportunity cost for Katie of producing 1 bat is producing 2 baseballs. This means that Mark has a lower opportunity cost and the comparative advantage in the production of bats.

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