Both Mergatroid and the Geebocks produce only gizmos and widgets. It is possible for Mergatroid to have
A) an absolute and a comparative advantage in both products.
B) an absolute but not a comparative advantage in both products.
C) a comparative but not an absolute advantage in both products.
D) neither a comparative nor an absolute advantage in both products.
B
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Refer to Table 4-3. The table above lists the marginal cost of polo shirts by Marko's, a firm that specializes in producing men's clothing. If the price of polo shirts decreases from $15 to $10
A) producer surplus will fall from $13 to $3. B) consumers will buy no polo shirts. C) there will be a shortage of polo shirts. D) the marginal cost of producing the third polo shirt will increase to $25.
The primary difference between a market-day supply curve and a short-run supply curve is the
a. amount of time that suppliers have to respond to a price change b. number of suppliers that can enter the market c. time available to people to align their demands to supply d. type of good being produced e. lower price that increases quantity supplied