When Angel Has a Comparative Advantage Over Blake in Cooking

question 149

Multiple Choice

When Angel has a comparative advantage over Blake in cooking, it means that:

• A) the opportunity cost of cooking is higher for Angel than Blake.
• B) the opportunity cost of cooking is lower for Angel than Blake.
• C) Angel can cook faster than Blake can.
• D) Blake can cook faster than Angel can.

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Definitions:

Consumer's Surplus

The gap between what consumers are prepared and capable of paying for a product or service and what they end up spending.

Used Cars

Pre-owned vehicles that have been previously registered and used, often sold through various markets and dealerships.

Demand Segmentation

The process of dividing a market into distinct groups of buyers based on different demands and characteristics, allowing for more targeted and effective marketing strategies.

Marginal Cost

The increase in total production costs resulting from producing one additional unit of a good or service.