The accompanying figures depict the production possibilities frontiers (PPFs) for two people who can allocate the same amount of time between making pizzas and making stromboli.Which statement about comparative advantage is true?
A) Jim has a comparative advantage in the production of stromboli because his opportunity cost is lower.
B) Jim has a comparative advantage in the production of stromboli because his opportunity cost is higher.
C) Jim has a comparative advantage in the production of pizzas because his opportunity cost is lower.
D) Jim has a comparative advantage in the production of pizzas because his opportunity cost is higher.
E) Jim has a comparative advantage in the production of both pizzas and stromboli.
Correct Answer:
Verified
Q71: Refer to the following table to answer
Q91: use the figures below to answer
Q92: use the figures below to answer
Q96: Consider the following scenario to answer the
Q98: Consider the following scenario to answer the
Q102: When one producer has a comparative advantage
Q103: Suppose Jim is a brilliant attorney who
Q105: To determine which of two producers has
Q106: Suppose that,on a particular Saturday,Mark Zuckerberg and
Q110: For both parties to benefit from specialization
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents