Use the Following Scenario to Answer the Following Questions

question 46

Multiple Choice

Use the following scenario to answer the following questions:
Rosa and Dirk produce basketballs and footballs.Rosa can produce six basketballs per hour or two footballs per hour.Dirk can produce three basketballs per hour or four footballs per hour.
-Based on the scenario,Rosa has

• A) an absolute advantage in producing basketballs,but not footballs.
• B) an absolute advantage in producing footballs,but not basketballs.
• C) an absolute advantage in producing both goods.
• D) an absolute advantage in producing neither good.
• E) no comparative advantage.

Understand the concept of allocative efficiency and its relevance to purely competitive markets.

Grasp the principle of marginal cost (MC) and marginal revenue (MR) equality for profit maximization.

Define economic, normal, and accounting profits and their significance to business decisions.

Appreciate the role of technology and resource prices in shaping industry cost structures and market dynamics.

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Definitions:

Critical Behavior

Critical behavior refers to actions or reactions under intense or emergency circumstances which are crucial for resolving situations or crises.

Judge

An official appointed or elected to hear and decide legal cases in a court of law, or an individual making informed conclusions or assessments about something or someone.

Realistic Accuracy Model

A framework in personality psychology that explains how observers can accurately perceive a target person's personality traits through a four-step process: relevance, availability, detection, and utilization of cues.

Identifies Trait

Refers to the process of recognizing and naming specific characteristics or qualities that distinguish an individual or item from others.