Scenario: Mark Can Make Three Tables and One Chair in a Day

question 154

Multiple Choice

Scenario: Mark can make three tables and one chair in a day, while John can make four tables and one chair in a day.
-Refer to the scenario above.Which of the following is true in this case?

• A) Mark has both comparative and absolute advantage in making tables.
• B) John has both comparative and absolute advantage in making tables.
• C) Mark has both comparative and absolute advantage in making chairs
• D) John has both comparative and absolute advantage in making chairs.

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Definitions:

Equilibrium Quantity

The quantity at which the amount of goods supplied is equal to the amount of goods demanded.

Equilibrium Quantity

The quantity of goods or services supplied in the market at which the quantity demanded equals the quantity supplied, leading to a stable market price.

Supply

The total amount of a good or service that is available for purchase at any given price level.

Demand

The extent of a good or service that patrons are inclined and have the ability to secure at different price ranges over a set period.