Rosa and Dirk produce basketballs and footballs. Rosa can produce six basketballs per hour or two footballs per hour. Dirk can produce three basketballs per hour or four footballs per hour. Based on the scenario, which of the following is true?

a. Dirk has an absolute advantage in producing basketballs, but not footballs.
b. Dirk has an absolute advantage in producing both goods.
c. Dirk has an absolute advantage in producing neither good.
d. Rosa has a comparative advantage in producing both goods.
e. Dirk has an absolute advantage in producing footballs, but not basketballs.

Absolute advantage means to lower the production cost of a given good as compared to the competitors. Comparative advantage refers to the lowering the opportunity cost for producing certain goods as compared to competitors.

Dirk can produce four footballs per hour. So, this way he can lower the production cost as compared to Rosa as she can produce only 2 footballs per hour. So, it will be absolute advantage for Dirk to product footballs.

Thus, answer is Option E: "Dirk has absolute advantage in producing footballs and not basketballs".