Asked by Paola Reyes on Jun 30, 2024
Verified
If they spend all night writing computer programs,Laurence can write 10 programs,and Carrie Anne can write 5.If they spend all night making sunglasses,Laurence can make 6 pairs,and Carrie Anne can make 4.Given this information and supposing Laurence and Carrie Anne have constant opportunity costs,we know that _____ has an absolute advantage in _____.
A) Laurence;programs but not in sunglasses.
B) Laurence;both programs and sunglasses.
C) Carrie Anne;programs but not in sunglasses.
D) Carrie Anne;both programs and sunglasses.
Absolute Advantage
The ability of an entity to produce a good or service more efficiently than its competitors, using fewer resources.
Programs
Structured plans or initiatives designed to achieve certain goals or outcomes, often referring to software in computing contexts.
Sunglasses
Protective eyewear designed to prevent bright sunlight from damaging or discomforting the eyes.
- Attain insight into the theory of absolute and comparative advantage.
Verified Answer
NP
NAKYRA PROPHET SMITHJul 02, 2024
Final Answer :
B
Explanation :
Laurence has an absolute advantage in both programs (10 vs. 5) and sunglasses (6 vs. 4).
Learning Objectives
- Attain insight into the theory of absolute and comparative advantage.