If a job requires two activities and there are two workers who can perform those activities, then which of the following statements regarding absolute advantage must be false?
a. One worker can have an absolute advantage in both activities.
b. One worker may not have an absolute advantage in neither activity.
c. Neither worker can have an absolute advantage in either activity.
d. Both workers can have an absolute advantage in both activities.
d. Both workers can have an absolute advantage in both activities.
You might also like to view...
The law of increasing opportunity cost results in a constant slope of the production possibilities curve.
a. true b. false
Suppose a firm that sells a variety of athletic shoes is trying to start a pattern of price leadership in its market. Which of the following is not a problem this firm might have to face?
a. Rivals recognize the intent of its actions. b. Other firms may not necessarily follow the leader. c. Other firms may not follow the leader but offer better service instead. d. Differentiation among products allows for more variation in price. e. The price leader must keep costs lower than other firms'.