Solved

In One Hour,Sue Can Produce 50 Caps or 10 Jackets

Question 138

Multiple Choice

In one hour,Sue can produce 50 caps or 10 jackets and Tessa can produce 70 caps or 7 jackets.Sue's opportunity cost of producing a cap is ________ jackets and Tessa's opportunity cost of producing a cap is ________ jackets.
________ has a comparative advantage in producing caps.
If Sue and Tessa each specialize in producing the good in which they have a comparative advantage and trade 1 jacket for 7 caps,________.


A) 0.2;0.10;Sue;Tessa gains but Sue loses
B) 5.0;10.0;Tessa;Sue loses but Tessa gains
C) 5.0;10.0;Sue;both Sue and Tessa gain
D) 0.2;0.10;Tessa;both Sue and Tessa gain
E) 0.2;0.10;Sue;both Sue and Tessa gain

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents