John and Mary Work Eight Hours at a Bakery

question 231

Multiple Choice

John and Mary work eight hours at a bakery. John can decorate either 10 ice-cream cakes or 4 wedding cakes; Mary can decorate either 8 ice-cream cakes or 2 wedding cakes. According to this scenario

• A)Mary has the absolute advantage in decorating wedding cakes.
• B)Mary has the absolute advantage in decorating ice-cream cakes.
• C)Mary has the comparative advantage in decorating ice-cream cakes.
• D)John has the comparative advantage in decorating ice-cream cakes.

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Definitions:

Counteroffer

A counteroffer is a proposal made in response to an original offer, altering its terms and effectively rejecting the initial offer.

Lapse of Time

The expiration of a specified duration which can affect contracts, rights, or obligations.

Delivery

The process of transporting goods from a source location to a predefined destination.

Option Contract

A legal agreement that grants a party the right, but not the obligation, to buy or sell an asset at a predetermined price and within a specified time frame.