Mary Jane is a lawyer who can earn $150 per hour in her law practice. She is also an excellent carpenter who can build cabinets three times as fast as the best carpenter, whose hourly wage is $20 per hour. Which of the following is a correct economic statement? a. Mary Jane has a comparative advantage in law so she should specialize in law and hire a carpenter to make her cabinets. b. Mary Jane has an absolute and comparative advantage in both law and carpentry, so she should make her own cabinets while continuing to practice law. c. Mary Jane is three times faster than any carpenter so she should give her law practice to become a carpenter. d. When carpenters work for lawyers, they should charge $150 per hour instead of $20 per hour. e. Because Mary Jane is an excellent carpenter, when the best carpenter works for Mary Jane, he can only charge one third as much, or $6.67 per hour.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Mary Jane is a lawyer who can earn $150 per hour in her law practice. She is also an excellent carpenter who can build cabinets three times ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Morphological types become useful temporal types if their frequencies change significantly through time and they are restricted in time. true
Answers (1)
Inflation can be measured by the a. change in the consumer price index. Inflation in the U. S. has averaged about 2.5% over the last 80 years. b. change in the consumer price index. Inflation in the U. S. has averaged about 4% over the last 80 years.
Answers (1)
9) What is the dominant strategy for bidders in an English oral auction?9) A) Bid until the previous bid price equals the reservation price of the last bidder. B) Keep bidding until all other bidders quit, regardless of your reservation price.
Answers (1)
Which of the following laws grants you the right to know what is in your credit file? A. Fair Credit Reporting Act B. Truth-in-Lending Act C. Credit Card Act of 2009 D. Fair Credit Billing Act
Answers (1)
James Corporation is planning to issue bonds with a face value of $500,000 and a coupon rate of 6 percent. The bonds mature in 10 years and pay interest semiannually every June 30 and December 31.
Answers (1)
New Questions in Business
Assume that total costs assigned to the setup activity cost pool in March are $120,000 and 100 setups were completed in March. Further, assume that during March machines were setup 20 times to make product X5.
Answers (1)
The accounting cycle starts with a. closing out the periodic accounts. b. recording the transaction based on the information in a source document. c. preparing the financial statements. d. preparing the adjusting entries.
Answers (1)
Ratemakers at ABC Insurance Company calculated the pure premium to be $280 for a risk they were considering insuring. What is the gross rate for this risk, assuming a 30 percent expense ratioA) $364 B) $400 C) $430 D) $520
Answers (1)
When plant assets are purchased as a group in a single transaction for a lump-sum price, the cost of the purchase is allocated among the different types of assets acquired based on their relative market values. true or false
Answers (1)
What are the security and management issues concerning virtual offices, especially hooked up into large virtual networks?
Answers (1)