Multiple Choice
Suppose that Penn's opportunity cost of producing an extra Pepsi is 3 cheeseburgers while Teller's opportunity cost is 0.14 cheeseburgers.One could predict that
A) Penn must have an absolute advantage in producing cheeseburgers.
B) Teller must have an absolute advantage in producing Pepsis.
C) they have little to gain from specialization and coordinating production.
D) Teller has a comparative advantage in cheeseburger production.
E) they have potentially much to gain from specialization and coordinating production.
Correct Answer:

Verified
Correct Answer:
Verified
Q74: To say some person has a comparative
Q75: A country's production possibilities curve is concave
Q76: Smith and Jones comprise a two-person economy.Their
Q77: An influx of immigrants would cause the
Q78: When individuals or groups specialize in producing
Q80: Good W is on the vertical axis
Q81: Teddy's production possibilities curve for goods M
Q82: The equation for Cartman's production possibilities curve
Q83: In general,individuals should specialize in producing those
Q84: A reduction in the length of the