Eileen Has a Comparative Advantage Over Jan in Piano Tuning,but

question 25

Multiple Choice

Eileen has a comparative advantage over Jan in piano tuning,but not shoe polishing.Therefore,_____.

• A)Jan must have an absolute advantage in piano tuning
• B)Eileen must have an absolute advantage in shoe polishing
• C)Jan must have a lower opportunity cost of shoe polishing
• D)Eileen must have an absolute advantage in shoe polishing and in piano tuning
• E)Eileen must have an absolute advantage in piano tuning

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Definitions:

Entrepreneurship

The process of designing, launching, and managing a new business venture, typically characterized by innovation and risk-taking.

Proprietorship

A business structure in which the business and the owner are legally considered the same, making the owner personally responsible for all the business's debts and obligations.

Corporation

A legal entity that is separate from its owners, providing them limited liability, and has the ability to raise capital through the sale of shares.

Service Business

A type of business that provides intangible products, such as time, expertise, or activities, where physical goods are not transferred to the customer.