Table 18.2 -Consider Two Individuals, Jesse and April, Who Hand Paint Kites

question 189

Multiple Choice

Table 18.2
-Consider two individuals, Jesse and April, who hand paint kites and snowboards. Table 18.2 shows how much of each good Jesse and April can paint in one hour. Which of the following is TRUE?

• A) April has an absolute advantage in painting kites but not snowboards.
• B) April has an absolute advantage in painting snowboards but not kites.
• C) April has an absolute advantage in painting both goods.
• D) April does not have an absolute advantage in painting either good.

---

Definitions:

Average Cost

The total cost divided by the number of goods produced, also known as cost per unit.

Total-Cost Curve

A graph that shows the relationship between the total cost incurred by a firm and the level of output produced.

Production Function

An equation or graph showing the maximum output that can be produced with a given set of inputs, such as labor and capital, under existing technology.

Marginal Product

Enhanced output originating from the inclusion of an additional input unit.