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Answer the following question: Q: John can produce either 10 shirts or 5 shoes in a day and Judy can produce either 9 shirts or
Answer the following question:
Q: John can produce either 10 shirts or 5 shoes in a day and Judy can produce either 9 shirts or 3 pairs of shoes in a day. Which of the following statements is true?
a. The oportunity cost for John to produce one shirt is 2 pairs of shoes.
b. John has both the absolute advantage and the commparative advantage in the production of both goods.
c. The opportunity cost for Judy to produce one pair of shoes is three shirts.
d. John has the comparative advantage in the production of shirts.
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