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.
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Operations Management Processes And Supply Chains
Authors: Lee Krajewski, Naresh Malhotra, Larry Ritzman
13th Global Edition
129240986X, 978-1292409863
