Tom and Jerry Have Two Tasks to Do All Day

question 11

Multiple Choice

Tom and Jerry have two tasks to do all day: set traps and build bombs.If Tom spends all day setting traps,he will have set 16 traps.If he instead devotes his day to building bombs,Tom will build 4 bombs.If Jerry spends his day setting traps,he will set 14 traps;if he spends the day building bombs,he will build 7 bombs.Because Tom has a ____________ opportunity cost for one bomb compared to Jerry,we know Tom has _________________________.

• A)higher;the comparative advantage in bomb production
• B)lower;the comparative advantage in bomb production
• C)similar;no advantage in production of either good
• D)higher;the comparative advantage in trap production

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Definitions:

Retailer

A business or person that sells goods to consumers, acting as a final link in the distribution chain between manufacturers and end-users.

Atmospherics

Sensory-based stimuli within a retailer’s environment—the sights, sounds, smells, and other attributes—that project an image and draw customers to the store.

Gamification

The application of typical elements of game playing (e.g., point scoring, competition with others, rules of play) to other areas of activity, typically as an online marketing technique to encourage engagement with a product or service.

Catalog Marketing

A retail sales technique used to group many items together in a printed piece or an online store.