If Jeremy Has an Absolute Advantage in Cooking and Margaret

question 76

Multiple Choice

If Jeremy has an absolute advantage in cooking and Margaret has an absolute advantage in cleaning, then

• A)Jeremy has a comparative advantage in cooking, and Margaret has a comparative advantage in cleaning
• B)Jeremy has a comparative advantage in cleaning, and Margaret has a comparative advantage in cooking
• C)we can conclude nothing about comparative advantage
• D)Jeremy has a comparative advantage in cooking, but we can conclude nothing about Margaret
• E)Margaret has a comparative advantage in cleaning, but we can conclude nothing about Jeremy

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Definitions:

Specialized Mode

A specific way of operation or function that is designed for a particular purpose or task, often seen in technology or transportation sectors.

Industries

Sectors of the economy made up of manufacturing, production, or services that share common characteristics, skills, technologies, and markets.

Inventory Carrying

The costs associated with storing unsold goods, including finance, storage, and risk costs.

Obsolescence

The process of becoming outdated or no longer used, often due to advancements in technology or changes in consumer preferences.