Michael Can Produce the Following Combinations of X and Y

question 52

Multiple Choice

Michael can produce the following combinations of X and Y: 10X and 10Y, 5X and 15Y, and 0X and 20Y. Vernon can produce the following combinations of X and Y: 100X and 20Y, 50X and 30Y, or 0X and 40Y. It follows that

• A)Michael has the comparative advantage in producing X and Vernon has the comparative advantage in producing Y.
• B)Michael has the comparative advantage in producing Y and Vernon has the comparative advantage in producing X.
• C)Neither Michael nor Vernon has a comparative advantage in producing X.
• D)Neither Michael nor Vernon has a comparative advantage in producing Y.

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Definitions:

Purge

(1) When referring to charts, to clean out; purge files of those patients who are no longer being seen by the provider. (2) To empty; to cleanse of impurities; clear.

Impurities

Foreign substances or contaminants present within another substance that can affect its purity, quality, or performance.

Scurvy

A disease caused by a lack of vitamin C, characterized by symptoms such as anemia, weakness, and bleeding gums.