-Refer to Table 3-2

question 36

Multiple Choice

-Refer to Table 3-2. What does each producer have an absolute or comparative advantage in?

• A) The rancher has an absolute advantage in both goods, and the farmer has a comparative advantage in meat.
• B) The rancher has an absolute advantage in meat, and the farmer has a comparative advantage in potatoes.
• C) The rancher has an absolute advantage in meat, and the farmer has a comparative advantage in neither good.
• D) The rancher has an absolute advantage in neither good, and the farmer has a comparative advantage in potatoes.

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Definitions:

Demand Schedule

A table that lists the quantity of a good that consumers are willing and able to purchase at varying price points, at a specific moment in time.

Total Utility

The total satisfaction or benefit that a consumer derives from consuming a certain quantity of goods or services.

Consumer Surplus

Describes the difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually pay.

Action Figures

Small figures of characters from movies, comics, or video games, often collectible and targeted towards fans and collectors.