Michael and Martha run a mechanic shop. In one hour Michael can perform eight oil changes or change ten tires. In one hour Martha can perform seven oil changes or change fourteen tires. Given this information which of the following is true?
A) Martha has a comparative advantage in changing oil.
B) Martha has an absolute advantage in changing oil.
C) Michael has a comparative advantage in changing tires.
D) Michael has an absolute advantage in changing tires.
E) Michael has an absolute and a comparative advantage in changing oil

Absolute advantage is explained as the ability an individual or corporation has by producing more using a limited amount of resources. Comparative advantage refers to companies or individuals producing at lower opportunity costs than their competitors. Thus:

Michael can make 8 oil changes per hour when Martha can make 7 oil changes per hour. Michael has an absolute advantage, then.

Michael's opportunity cost of making 1 oil change is changing 1,25 tires (10/8 = 1.25). Martha's opportunity cost of making 1 oil change is changing 2 tires (14/7 = 2). Michael has a comparative advantage in changing oil, then.