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.

---

Definitions:

Drapery Store

A retail establishment that specializes in selling cloth and other materials for windows and home decoration.

Gold Fabric

A material made using gold threads, often used in luxury textiles or high-end fashion.

Markup

The difference between the selling price and the unit cost of an item of merchandise. (Also called gross profit.)

Packaged CD

A Certificate of Deposit sold as part of an investment package or bundle, often offering fixed interest rates.