The Accompanying Figures Depict the Production Possibilities Frontiers (PPFs) for Two

question 34

Multiple Choice

The accompanying figures depict the production possibilities frontiers (PPFs) for two people who can allocate the same amount of time between making pizzas and making stromboli. Which statement about comparative advantage is true?

• A) Jim has a comparative advantage in the production of stromboli because his opportunity cost is lower.
• B) Jim has a comparative advantage in the production of stromboli because his opportunity cost is higher.
• C) Jim has a comparative advantage in the production of pizzas because his opportunity cost is lower.
• D) Jim has a comparative advantage in the production of pizzas because his opportunity cost is higher.
• E) Jim has a comparative advantage in the production of both pizzas and stromboli.

---

Definitions:

PR Activities

Actions undertaken by organizations to communicate with their target audiences, build their reputation, and manage public opinion through various strategies and channels.

Merger

The combining of two or more companies into a single entity, usually with the goal of achieving market growth, synergy, and enhanced competitive strength.

Acquisition

The process by which one company purchases most or all of another company's shares to gain control of that company.

PR Decisions

Strategic choices made in the field of public relations to manage the perception of an organization or individual by its publics.