Question

Which company had the comparative advantage in producing large tubes of toothpaste?

Answer 1

Mmmint had the comparative advantage in producing large tubes of toothpaste.A producer gains by specialising of absolute advantage. Absolute advantage is amount produced divided by resources used.

Answer 2

The correct answer is "Mmmint".

Explanation:

The Mmmint company is the one which had a comparative advantage in producing large tubes of toothpaste. According to this table, the ones that have the advantage are Fresh and "Mmmint". But Mmmint had a comparative advantage.