Answer:
c) Bob has a comparative advantage over Don in the production of pens
Explanation:
Comparative advantage is an economic term that refers to the ability of an individual, a company or a country to produce goods or services at a lower opportunity cost than others. Comparative advantage enables a party to sell its products cheaper than others.
In this scenario, Bob produces 15 pens in an hour in comparison to Don, who produces only 10. It means Bob uses a low cost of labor per pen in comparison to Don. Bob's production capacity of 15 pens also means a higher efficiency rate compared to Don. If a cost estimate were to be done, Bobs' pens would be more competitive in the market than Dons'.
