Eileen Has a Comparative Advantage Over Jan in Piano Tuning,but

question 25

Multiple Choice

Eileen has a comparative advantage over Jan in piano tuning,but not shoe polishing.Therefore,_____.

• A)Jan must have an absolute advantage in piano tuning
• B)Eileen must have an absolute advantage in shoe polishing
• C)Jan must have a lower opportunity cost of shoe polishing
• D)Eileen must have an absolute advantage in shoe polishing and in piano tuning
• E)Eileen must have an absolute advantage in piano tuning

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Definitions:

Treble Damages

A legal principle allowing a court to triple the amount of the actual/compensatory damages to be awarded to a plaintiff.

Four-Firm Concentration

A measure of market concentration that evaluates the total market share of the four largest firms within an industry.

Standard Oil Case

A 1911 antitrust case in which Standard Oil was found guilty of violating the Sherman Act by illegally monopolizing the petroleum industry. As a remedy the company was divided into several competing firms.

Microsoft Case

A 2002 antitrust case in which Microsoft was found guilty of violating the Sherman Act by engaging in a series of unlawful activities designed to maintain its monopoly in operating systems for personal computers; as a remedy the company was prohibited from engaging in a set of specific anticompetitive business practices.