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Lou and Alex Live Together and Share Household Chores

question 16

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Lou and Alex live together and share household chores.They like to cook some meals ahead of time and eat leftovers.The table below shows the number of rooms they can each clean and the number of meals they can each cook in an hour. Lou and Alex live together and share household chores.They like to cook some meals ahead of time and eat leftovers.The table below shows the number of rooms they can each clean and the number of meals they can each cook in an hour.   Which of the following is true? A) Lou has both an absolute advantage and a comparative advantage over Alex in both tasks. B) Alex has a comparative advantage over Lou in cleaning. C) Lou has a comparative advantage over Alex in cleaning. D) Alex has both an absolute advantage and a comparative advantage over Lou in both tasks. Which of the following is true?


Definitions:

Market Power

The ability of a firm or group of firms to influence the price of a product or service in the market.

Substitution Effect

The economic principle referring to the change in consumption patterns due to a change in the relative prices of goods, leading consumers to substitute more expensive items with cheaper alternatives.

Product Rises

This term seems unclear or incomplete. If referring to a situation where the price or demand for a product increases, there is no single term that universally describes this scenario as "Product Rises." NO.

Income Effect

The change in consumption resulting from a change in real income, which can itself result from changes in wages or prices.

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