Use the Following Scenario to Answer the Following Questions

question 76

Multiple Choice

Use the following scenario to answer the following questions:
Raven and Drew produce baseballs and golf balls.Raven can produce six baseballs per hour or four golf balls per hour.Drew can produce three baseballs per hour or one golf ball per hour.
-Based on the scenario,Raven has

• A) a comparative advantage in producing baseballs,but not golf balls.
• B) a comparative advantage in producing golf balls,but not baseballs.
• C) a comparative advantage in producing both goods.
• D) a comparative advantage in producing neither good.
• E) no absolute advantage.

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Definitions:

Price Elasticity of Demand Coefficient

A metric that determines how the demand for a product reacts to adjustments in its price.

Midpoint Formula

A mathematical method used to calculate the average or midpoint of two points on a line, often used in economics to find the elasticity of demand.

Resource Costs

The expenses associated with the acquisition and use of raw materials, labor, and other inputs required for the production of goods or services.