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Use the Following Scenario to Answer the Next Four Questions

Question 82

Multiple Choice

Use the following scenario to answer the next four questions:
RayRay and Andrew produce baseballs and golf balls. RayRay can produce six baseballs per hour or four golf balls per hour. Andrew can produce three baseballs per hour or one golf ball per hour.
-Based on the scenario,which of the following is true?


A) RayRay has an absolute advantage in producing baseballs but not golf balls.
B) RayRay has an absolute advantage in producing golf balls but not baseballs.
C) RayRay has an absolute advantage in producing both goods.
D) RayRay has an absolute advantage in producing neither good.
E) RayRay does not have any comparative advantage.

Correct Answer:

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