Suppose that Cassidy and Dmitri each have ten hours of time available to produce two goods: apples and bananas. Cassidy can produce 10 apples in one hour and 5 bananas in one hour. Dmitri can produce 5 apples in one hour and 10 bananas in one hour. Which of the following is true? O Cassidy has absolute advantage in producing bananas. Cassidy has comparative advantage in producing bananas. Dmitri has comparative advantage in producing apples. Cassidy has absolute advantage in producing apples.

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Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.