If Jeremy Has an Absolute Advantage in Cooking and Margaret

question 76

Multiple Choice

If Jeremy has an absolute advantage in cooking and Margaret has an absolute advantage in cleaning, then

• A)Jeremy has a comparative advantage in cooking, and Margaret has a comparative advantage in cleaning
• B)Jeremy has a comparative advantage in cleaning, and Margaret has a comparative advantage in cooking
• C)we can conclude nothing about comparative advantage
• D)Jeremy has a comparative advantage in cooking, but we can conclude nothing about Margaret
• E)Margaret has a comparative advantage in cleaning, but we can conclude nothing about Jeremy

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Definitions:

Differentiate Products

The strategy of distinguishing a product from its competitors through design, features, branding, or quality.

Market Power

The ability of a firm to influence the price of its product or service in the market, often through controlling supply, influencing demand, or both.

Differentiated Products

Goods or services that are distinguished from similar offerings by characteristics such as quality, design, branding, or features.

Product Differentiation

The strategy of making a product or service stand out from competitors in the market by emphasizing unique features, quality, or branding.