Question

donna and mary both have the skills to produce baskets. donnas opportunity cost of producing baskets is lower than marys opportunity cost of producing baskets. this means that donna must have an absolute advantage in the production of baskets. donna has a comparative advantage in the production of baskets. mary has a comparative advantage in the production of baskets. mary must have an absolute advantage in the production of baskets.

Explanation:

Comparative advantage is about lower opportunity - cost. If Donna's opportunity cost of producing baskets is lower than Mary's, Donna has a comparative advantage in basket - production. Absolute advantage is about producing more with the same resources. The statement only gives information about opportunity cost, not about absolute production levels.

Answer:

Donna has a comparative advantage in the production of baskets.