Question
Ann takes 16 minutes to make a pizza and 9 minutes to make a burger. Bob takes 19 minutes to make a pizza and 31
Ann takes 16 minutes to make a pizza and 9 minutes to make a burger. Bob takes 19 minutes to make a pizza and 31 minutes to make a burger.
a - if Ann has both an absolute advantage and a comparative advantage in pizza-making.
b - if Ann has an absolute advantage in pizza-making. She does not have a comparative advantage in pizza-making.
c- if Ann does not have an absolute advantage in pizza-making. She has a comparative advantage in pizza-making.
d - Ann does not have an absolute advantage in pizza-making. She does not have a comparative advantage in pizza-making, either.
Note: If Ann and Bob are equally good according to the definition of an advantage, we say that they both have this advantage.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started