Eileen Has a Comparative Advantage Over Jan in Piano Tuning

question 59

Multiple Choice

Eileen has a comparative advantage over Jan in piano tuning, but not shoe polishing. Which of the following is correct?

• A) Jan must have an absolute advantage in piano tuning
• B) Eileen must have an absolute advantage in shoe polishing
• C) Jan must have a lower opportunity cost of shoe polishing
• D) Eileen must have an absolute advantage in shoe polishing and in piano tuning
• E) Eileen must have an absolute advantage only in piano tuning

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Definitions:

Perfectly Competitive

A market structure where many firms sell identical products, no single firm can influence the market price, and there are no barriers to entry or exit.

Standardized Product

A product that conforms to specifications that ensure it is the same in quality and design, regardless of the source of production.

Microsoft

A multinational technology company known for its software products, including the Windows operating system, Office suite, and Azure cloud services.

Windows Operating System

A series of graphical operating systems developed, marketed, and sold by Microsoft.