Mark Is a Computer Company Executive, and Earns $200 Per

question 176

True/False

Mark is a computer company executive, and earns $200 per hour managing the company and promoting its products. His daughter Regan is a high school student, and earns $6 per hour helping her grandmother on the farm. Mark's computer is broken. He can repair it himself in one hour. Regan can repair it in 10 hours. Mark has a comparative advantage repairing the computer.

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Definitions:

Corn

A cereal plant that yields large grains, or kernels, set in rows on a cob; often grown as food for humans and fodder for animals.

Futures Price

The agreed-upon price for a financial instrument or commodity to be delivered and paid for at a future date.

Orange Juice

A liquid extract of the orange tree fruit, consumed as a beverage or used in culinary dishes and as a commodity traded on futures markets.

Futures Contracts

Standardized legal agreements to buy or sell a financial instrument or physical commodity at a predetermined future date and price.