David takes 10 minutes to process a customer, and 20 minutes to stock the shelves. Danny takes 15 minutes to process a customer, and 15 minutes to stock the shelves. Which of the following statements is true?
A) Danny has a comparative advantage in processing customers and in stocking shelves.
B) David has a comparative advantage in processing customers but not in stocking shelves.
C) Danny has an absolute advantage in performing both tasks.
D) Danny has a comparative advantage in processing customers but not in stocking shelves.
E) David has an absolute advantage in performing both tasks.
B
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Using the economic way of thinking, which of the statements listed below best answers the following question: Why do professional athletes tend to make more money than professional poets?
A) Americans love sports and hate poetry. B) Poets are less greedy and materialistic than athletes. C) More people are willing to pay $50 per ticket to see an athletic competition than they are to listen to a poet. D) The supply of poets is too low.
Refer to Table 14-1. Let's suppose the game starts with each firm adhering to its original budget so that Godrickporter earns a profit of $6,000 and Star Connections earns a profit of $12,000
Is there an incentive for any one firm to increase its advertising budget? A) No, neither firm has an incentive to raise its advertising budget. B) Yes, Godrickporter has an incentive to increase its advertising budget, but Star Connections does not. C) Yes, Star Connections has an incentive to increase its advertising budget, but Godrickporter does not. D) Yes, both firms have an incentive to raise their advertising budgets.