Based on the Figure,which Statement About Comparative Advantage Is True

question 28

Multiple Choice

Based on the figure,which statement about comparative advantage is true?

• A) Bo has a comparative advantage in the production of stromboli because her opportunity cost is lower.
• B) Bo has a comparative advantage in the production of stromboli because her opportunity cost is higher.
• C) Bo has a comparative advantage in the production of pizzas because her opportunity cost is lower.
• D) Bo has a comparative advantage in the production of pizzas because her opportunity cost is higher.
• E) Bo has a comparative advantage in the production of both pizzas and stromboli.

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Definitions:

Adequacy of Consideration

Assessing whether something of legal value has been exchanged in a contract to justify the parties’ obligations.

Consideration

In contract law, it refers to something of value, such as money, services, or goods, exchanged between parties as part of an agreement.

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise made to another if the latter has reasonably relied on that promise to their detriment.

Reasonable Reliance

A principle where a party acts based on the representation or promise of another, believing it to be true.