Question

Fact 2.4.2 Agnes can produce either 1 unit of X or 1 unit of Y in an hour, while Brenda can produce either 2 units of X or 4 units of Y in an hour. 6) Refer to Fact 2.4.2. Which one of the following statements is true? A) Brenda has an absolute advantage over Agnes in the production of both goods. B) Brenda will not gain from trade. C) Agnes has a comparative advantage in the production of Y. D) Brenda has a comparative advantage in the production of X. E) Agnes will not gain from trade.