Both Mergatroid and the Geebocks Produce Only Gizmos and Widgets

question 187

Multiple Choice

Both Mergatroid and the Geebocks produce only gizmos and widgets. It is possible for Mergatroid to have

• A) an absolute and a comparative advantage in both products.
• B) a comparative but not an absolute advantage in both products.
• C) neither a comparative nor an absolute advantage in both products.
• D) an absolute but not a comparative advantage in both products.

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Definitions:

Traditional Model

A conventional or long-established approach or method in a certain context, such as business or governance.

Negotiated Contracts

Legal agreements formed through the process of discussion and compromise between two or more parties, often relating to employment or services.

Unionists

Individuals or members of a labor union representing workers' interests.

Productivity

The measure of the efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs.