Table 3-4 -Refer to the Table.Who Has an Absolute Advantage in the Absolute

question 166

Multiple Choice

Table 3-4

-Refer to the table.Who has an absolute advantage in the production of each good

• A)Alberta has an absolute advantage in birdhouses, and Manitoba has an absolute advantage in baskets.
• B)Alberta has an absolute advantage in baskets, and Manitoba has an absolute advantage in birdhouses.
• C)Alberta has an absolute advantage in neither good, and Manitoba has an absolute advantage in both goods.
• D)Alberta has an absolute advantage in both goods, and Manitoba has an absolute advantage in neither good.

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Definitions:

Variable Costs

Costs that vary directly with the level of production or the volume of output.

Special Assumption

A specific condition assumed to be true for the purpose of a theoretical framework or model, which may not apply in all real-world situations.

Matching Capacity

involves aligning a company's ability to produce goods or services with the demand for them, aiming to minimize costs and waste while meeting customer needs.

Demand

The desire and ability of consumers to purchase goods or services at a given price over a specific period.