Table 2.5 Table 2.5 Shows the Output Per Week of Two

question 71

Multiple Choice

Table 2.5

Table 2.5 shows the output per week of two jewelers, Serena and Haley.They can either devote their time to making bracelets or making necklaces.
-Refer to Table 2.5.Which of the following statements is true?

• A)Haley has an absolute advantage in making both products.
• B)Serena has an absolute advantage in making both products.
• C)Haley has an absolute advantage in making bracelets and Serena in making necklaces.
• D)Haley has an absolute advantage in making necklaces and Serena in making bracelets.

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Definitions:

Monopoly

A monopoly is a market structure where a single firm has exclusive control over the market supply of a product or service, often leading to higher prices for consumers.

Megawatts

A unit of power equal to one million watts, often used to describe the output capacity of power plants or the amount of electricity required by large entities.

Rent-Seeking Behavior

Actions by individuals or companies to increase their own wealth without creating new wealth or value, often through manipulating the environment in which economic activities occur.

Health Insurance

A type of insurance coverage that pays for medical and surgical expenses incurred by the insured or reimburses them for expenses incurred from illness or injury.