Suppose That,on a Particular Saturday,Mark Zuckerberg and Bill Gates Can

question 139

Multiple Choice

Suppose that,on a particular Saturday,Mark Zuckerberg and Bill Gates can either plant trees or spread mulch in their gardens.Their maximum output per day is listed in the following table,along with spaces where you can calculate the opportunity cost.Who has an absolute advantage in spreading mulch?

• A)Zuckerberg has the advantage because he gives up fewer trees each time he spreads 1 cubic yard of mulch.
• B)Gates has the advantage because he gives up fewer trees each time he spreads 1 cubic yard of mulch.
• C)Zuckerberg has the advantage because he gives up more trees each time he spreads 1 cubic yard of mulch.
• D)Neither has an absolute advantage in spreading mulch.
• E)Both parties have an absolute advantage in planting trees.

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Definitions:

Antitrust Policy

Regulations and laws that encourage competition by limiting monopolies, preventing mergers that would restrict competition, and other business practices that would reduce consumer welfare.

Tacit Collusion

An unspoken, informal agreement among competitors to limit competition and keep prices high.

Standard Oil

An American oil producing, transporting, refining, and marketing company established by John D. Rockefeller and partners in the 19th century, which became a highly influential and controversial monopoly.

Antitrust Policy

A set of laws and regulations aimed at promoting competition and preventing monopolies and unethical business practices.