If Irene can make either four chairs or one table in an hour and Greg can make either three chairs or two tables in an hour then
A) Irene has the absolute advantage in the production of chairs.
B) Irene has the comparative advantage in the production of tables.
C) Greg has the absolute advantage in the production of chairs.
D) Greg has the comparative advantage in the production of chairs.
A
You might also like to view...
What does the 45-degree line in the Lorenzo curve model indicate?
a. It shows how the population is distributed in the country. b. It shows the actual distribution of income with the population distribution. c. It divides income distribution in half with population distribution. d. It shows perfect equality between income distribution and population distribution.
Refer to Variable Cost of Production. For what levels of output does the firm experience diminishing marginal returns?
The following questions refer to the following table which shows a firm's variable costs of production.
a. For all levels of output.
b. For the first, second, and third units of output.
c. Beyond the third unit of output.
d. For the fifth and all subsequent units of output.