Table 24 Table 2

question 84

Multiple Choice

Table 2.4 Table 2.4 shows the output per week of two jewellers, Serena and Haley.They can either devote their time to making bracelets or making necklaces.
-Refer to Table 2.4.Which of the following statements is true?

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

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Definitions:

Loss

A financial situation in which expenses exceed revenues, indicating negative profitability for a business or investment.

New Firms

Newly established business entities that have recently started operations, contributing to innovation, competition, and economic dynamics.

Existing Firms

Businesses that are already operating within a market, as opposed to new entrants.

Long Run

A period in economics where all factors of production and costs are variable, allowing for complete industry adjustment to changes.