In Germany, One Worker Can Produce Either One Cuckoo Clock

question 282

Multiple Choice

In Germany, one worker can produce either one cuckoo clock or one beer mug. In Taiwan, one worker can produce either two cuckoo clocks or three beer mugs. Who has the comparative advantage in each good?

• A)Taiwan in both goods
• B)Taiwan in clocks and Germany in mugs
• C)Germany in clocks and Taiwan in mugs
• D)Germany in both goods

---

Definitions:

Maximization Problem

A type of optimization that involves finding the maximum value of a function within a given domain, often subject to constraints.

Marginal Gain

The additional benefit or improvement gained from producing or consuming one more unit of a product or service.

Optimal Solution

The best possible outcome or solution that maximizes or minimizes the objective function within the constraints of a problem.

Constraints

Limitations or restrictions that are placed on a situation, process, or activity.