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Consider the Following Scenario

Question 42

Multiple Choice

Consider the following scenario. Phillipa and Daveed produce baseballs and golf balls. Phillipa can produce six baseballs per hour or four golf balls per hour. Daveed can produce three baseballs per hour or one golf ball per hour.
-Which of the following statements is true?


A) Phillipa has a comparative advantage in producing baseballs but not golf balls.
B) Phillipa has a comparative advantage in producing golf balls but not baseballs.
C) Phillipa has a comparative advantage in producing both goods.
D) Deveed has a comparative advantage in producing golf balls, but not baseballs.
E) Neither Phillipa nor Daveed have any comparative advantage.

Correct Answer:

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