Suppose that opportunity costs are constant and that Gorge can either bake a maximum of six pies or three cakes in a day. Brandi can produce a maximum of eight pies or two cakes in a day. Brandi has an comparative advantage in the production of
A. pies.
B. cakes.
C. both cakes and pies.
D. neither cakes nor pies.
Answer: A
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Which of the following statements about competition in a market is true?
A) Competition forces firms to produce and sell products as long as the marginal benefit to consumers exceeds the marginal cost of production. B) Competition forces firms to undercut their selling price, thus benefiting consumers who will be able to purchase products at the lowest price possible. C) Competition forces firms to add only low profit margins to their costs of production. D) Competition forces firms to outsource the production of their labor-intensive products.
The market price of a factor of production that is in fixed supply is determined only by demand
Indicate whether the statement is true or false
In general, a bank that held excess reserves would earn lower profits as a result
a. True b. False Indicate whether the statement is true or false
A special kind of imperfectly competitive market that has only two firms is called
a. a two-tier competitive structure. b. an incidental monopoly. c. a doublet. d. a duopoly.