Which of the following describes comparative advantage?
A) Firm A can produce a good at a cost of $3 and Firm B can produce the same good at a cost of $4.
B) Jane can type 50 words per minute and Joe can type 60 words per minute.
C) To produce a tonne of wheat Farmer John must give up 2 tonnes of corn, whereas Farmer Ben must give up 3 tonnes of corn.
D) Company A can produce 4 boxes of cereal in a day, whereas Company B can produce 5 boxes of cereal in a day.
Correct Answer:
Verified
Q11: The production possibilities frontier
A) depicts the boundary
Q98: Q99: In order for societies to reap the Q100: In one day, Sue can change the Q103: Increasing opportunity cost occurs along a production Q105: When a nation has a comparative advantage Q106: Marginal benefit is the Q107: A production possibilities frontier does NOT illustrate Q296: Consider a production possibilities frontier with corn Q324: ![]()
A)amount of one good
A)the![]()
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