Travis Can Mow a Lawn in Two Hours or He

question 33

Multiple Choice

Travis can mow a lawn in two hours or he can trim a tree in one hour.Ricardo can mow a lawn in three hours or he can trim a tree in two hours.

• A)Travis has an absolute advantage over Ricardo in trimming trees.
• B)Travis has a comparative advantage over Ricardo in mowing lawns.
• C)Ricardo has a comparative advantage over Travis in trimming trees.
• D)All of the above are correct.

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Definitions:

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, allowing for some differentiation and price control.

Long-Run Economic Profits

The sustained extra income a firm generates when all inputs are variable, indicating the firm's long-term competitive advantage.

Monopolistic Competition

Monopolistic competition is a market structure where many companies sell products that are similar but not identical, allowing for product differentiation and some degree of market power.

Marginal Benefit

The incremental advantage received by using one more unit of a good or service.