If Shawn Can Produce More Donuts in One Day Than

question 43

Multiple Choice

If Shawn can produce more donuts in one day than Sue can produce in one day, then

• A)Shawn has a comparative advantage in the production of donuts.
• B)Sue has a comparative advantage in the production of donuts.
• C)Shawn has an absolute advantage in the production of donuts.
• D)Sue has an absolute advantage in the production of donuts.

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Definitions:

Direct Price Discrimination

A strategy in pricing where the seller sets varying prices for the identical product or service, depending on how much each customer is prepared to pay.

High-End Wok

A premium quality cooking utensil designed for stir-frying and other cooking methods, often featuring superior materials and craftsmanship.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually do pay.

No-Name Brand

Generic brands that are usually sold at a lower price compared to known brand names, typically lacking a brand logo.