Suppose it takes Dan 5 minutes to make a sandwich and 15 minutes to make a smoothie, and it takes Tracy 6 minutes to make a sandwich and 12 minutes to make a smoothie. Which of the following statements is correct?
A. Tracy should specialize in sandwiches and smoothies.
B. Dan should specialize in sandwiches, and Tracy should specialize in smoothies.
C. Dan should specialize in both sandwiches and smoothies.
D. Dan should specialize in smoothies, and Tracy should specialize in sandwiches.
Answer: B
You might also like to view...
Answer the following statements true (T) or false (F)
1. Perfect competition assumes that all products are identical and that no advertising exists. 2. Perfect competition assumes that a producer is interested in maximizing profit. 3. If all firms adhere to the conditions of perfect competition, short-run losses are avoided. 4. The aerospace industry is a good example of perfect competition.
A set of ideas about the economy that have been organized in a logical framework is called
A) empirical analysis. B) a methodology. C) economic theory. D) data development.
At a higher wage rate:
a. the opportunity cost of working increases. b. the opportunity cost of leisure increases. c. the opportunity cost of working decreases. d. the opportunity cost of leisure decreases.
A discouraged worker is someone who: a. has a job, but wants to get a different one
b. is unemployed and looking for work. c. quits a job and is unable to collect unemployment compensation. d. gives up looking for work, and is no longer counted as unemployed.