Mike can wash a car in 5 minutes and wax a car in 15 minutes. Tony can wash a car in 10 minutes and wax a car in 20 minutes. Which of the following is true?
a. Mike can wash a car faster and has comparative advantage in washing cars.
b. Mike can wax a car faster and has comparative advantage in waxing cars.
c. Tony can wash a car faster and has comparative advantage in washing cars.
d. Tony can wax a car faster and has comparative advantage in waxing cars.
a
You might also like to view...
Refer to the diagram that shows the market for U.S. health care. Other things equal, which of the following would shift the demand curve for medical care from D 1 to D 2 ?
A. Higher copayments and deductibles in insurance policies.
B. An aging population.
C. Cutbacks in the government's Medicaid program.
D. Restrictions by firms on the eligibility of part-time workers for medical benefits.
Along a supply curve,
A. supply changes as price changes. B. quantity supplied changes as price changes. C. supply changes as technology changes. D. quantity supplied changes as technology changes.