Answer:
True
Explanation:
A person has comparative advantage in production if he produces at a lower opportunity cost when compared with other people.
A person has absolute advantage in the production of a good or service If he produces more quantity of the good when compared with other people
To calculate comparative advantage, first find the opportunity cost:
Opportunity cost of timmy editing = 80/2=40 words
Opportunity cost of timmy typing = 2 / 80 = 0.025
Opportunity cost of oliva editing = 100/1= 100
Opportunity cost of oliva typing = 1/100=0.01
Olivia has a comparative advantage in typing while timmy has a comparative advantage in editing.
Olivia types more words than timmy, therefore she has an absolute advantage in typing.
Timmy edits more pages than oliva, Therefore, he has am absolute advantage in editing.
I hope my answer helps you
