Use the Following Scenario to Answer the Following Questions

question 154

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,which of the following is true?

• A) Drew has an absolute advantage in producing baseballs,but not golf balls.
• B) Drew has an absolute advantage in producing golf balls,but not baseballs.
• C) Drew has an absolute advantage in producing both goods.
• D) Drew has an absolute advantage in producing neither good.
• E) Raven has a comparative advantage in producing both goods.

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Definitions:

Antitrust Law

Legislation enacted to prevent monopolies and promote competition, ensuring fair practices in the marketplace.

Market Shares

The portion of a market controlled by a particular company or product, often expressed as a percentage of total sales in the industry.

Antitrust Cases

Legal actions taken by government entities to prevent or reduce monopolies and maintain competition within markets.

Federal Trade Commission

A federal agency established to promote consumer protection and the elimination and prevention of anticompetitive business practices.