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Suppose That Penn's Opportunity Cost of Producing an Extra Pepsi

Question 79

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.

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