John Can Make Pizza at a Lower Opportunity Cost Than

question 23

Multiple Choice

John can make pizza at a lower opportunity cost than Allen,but Allen can make more pizzas per day than John.Therefore,

• A) John cannot benefit from trade with Allen.
• B) Allen cannot benefit from trade with John.
• C) John has a comparative advantage in pizza.
• D) John has an absolute advantage in pizza.
• E) Allen has a comparative advantage in pizza.

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An electronic system of transmitting moving images and sound from a source to a receiver by means of radio waves or cables.

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A financing agreement where a movie studio agrees to buy the rights to a film after it is completed, typically guaranteeing distribution.

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A business strategy where a company acquires, merges with, or takes over another company in the same industry at the same stage of production.

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A business strategy where a company controls multiple stages of production and/or distribution within the same industry, often to increase control over the supply chain and reduce costs.