Eileen Has a Comparative Advantage Over Jan in Piano Tuning

question 47

Multiple Choice

Eileen has a comparative advantage over Jan in piano tuning but NOT in shoe polishing.What can therefore be concluded?  

• 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.

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Definitions:

Accounting Costs

The actual expenses and cash outlays that a business incurs, which are recorded in its financial statements.

Dental Floss

A thin filament used to remove food and dental plaque from between teeth in areas a toothbrush is unable to reach.

Economic Losses

Financial deficits incurred by businesses, individuals, or governments due to economic downturns or adverse market conditions.

Marginal Cost

The change in total cost that arises when the quantity produced is incremented by one unit; essentially, the cost of producing one additional unit of a good.