If Jason Can Wash a Car in 20 Minutes and Wash

question 88

Multiple Choice

If Jason can wash a car in 20 minutes and wash a dog in 10 minutes, and Megan can wash a car in 15 minutes and wash a dog in 15 minutes, which of the following statements is true?

• A)The opportunity cost of washing a car is greater for Megan.
• B)The opportunity cost of washing a car is one dog bath for Jason.
• C)Megan could wash two cars in the time it takes to wash a dog.
• D)Jason has both a comparative and an absolute advantage in washing a dog.
• E)The opportunity cost of washing a dog is greater for Jason.

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Definitions:

Selected Markets

Specified segments of the broader market that a company chooses to target for its marketing efforts, products, or services.

Direct Exporting

The sale of products directly to customers or retailers in another country, without the involvement of intermediaries.

Increased Profits

A rise in the amount of net earnings gained from business operations after all costs have been subtracted.

Indirect Exporting

A form of exporting where a company sells its products to a third party, such as an export intermediary, who then sells the products in foreign markets.