Suppose Jim and Tom Can Both Produce Two Goods: Baseball

question 131

Multiple Choice

Suppose Jim and Tom can both produce two goods: baseball bats and hockey sticks.Which of the following is not possible?

• A)Jim has an absolute advantage in the production of baseball bats and in the production of hockey sticks.
• B)Jim has an absolute advantage in the production of baseball bats and a comparative advantage in the production of hockey sticks.
• C)Jim has an absolute advantage in the production of hockey sticks and a comparative advantage in the production of baseball bats.
• D)Jim has a comparative advantage in the production of baseball bats and in the production of hockey sticks.

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Definitions:

Indifference

A state where a consumer has no preference between two or more choices.

Utility

An economic term referring to the total satisfaction received from consuming a good or service.

Indifference Curve

A graphical representation showing different combinations of goods or services among which a consumer is indifferent, implying no preference for one combination over another, given their utility or satisfaction remains constant.

Preferred

Refers to something that is more desirable or favored over other options.