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Table 3-29 Juanita and Shantala Run a Business That Programs and Tests

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Table 3-29
Juanita and Shantala run a business that programs and tests cellular phones. Assume that Juanita and Shantala can switch between programming and testing cellular phones at a constant rate. The following table applies.
Table 3-29 Juanita and Shantala run a business that programs and tests cellular phones. Assume that Juanita and Shantala can switch between programming and testing cellular phones at a constant rate. The following table applies. ​   -Refer to Table 3-29. Shantala has an absolute advantage in A) programming cellular phones and a comparative advantage in programming cellular phones. B) programming cellular phones and a comparative advantage in testing cellular phones. C) testing cellular phones and a comparative advantage in programming cellular phones. D) testing cellular phones and a comparative advantage in testing cellular phones.
-Refer to Table 3-29. Shantala has an absolute advantage in

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Definitions:

Marginal Cost

The cost added by producing one additional unit of a product or service.

Marginal Analysis

An examination of the additional benefits of an activity compared to the additional costs incurred by that same activity.

Additional Costs

Expenses that are not initially planned or anticipated, which can arise during the course of a project or as part of an operation.

Economic Models

Simplified representations of complex economic processes used to predict future economic activity.

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