Scott and Cindy Both Produce Only Pizza and Tacos

question 258

Multiple Choice

Scott and Cindy both produce only pizza and tacos.In one hour,Scott can produce 20 pizzas or 40 tacos.In one hour,Cindy can produce 30 pizzas or 40 tacos.Based on these data,

• A) Cindy has a comparative advantage at producing tacos.
• B) Scott has a comparative advantage at producing tacos.
• C) Cindy and Scott have the same comparative advantage in producing tacos.
• D) neither Cindy nor Scott has a comparative advantage in producing tacos.
• E) Cindy and Scott have the same comparative advantage in producing pizzas.

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Definitions:

Consideration

The value (such as money, services, or goods) that is promised in a contract to be exchanged to make the contract legally binding.

Subsequent Transferees

Individuals or entities that receive property rights or interests from previous holders through a legal process of transfer.

Authentic

Genuine, original, and not a copy or imitation; true and accurate.

Consideration

Something of value that is exchanged between parties in a contract, making the agreement legally binding.