Ask Question
BusinessBusiness
14 August, 01:08

If luke can bake bread at a lower opportunity cost than jason, and jason can produce paintings at a lower opportunity cost than luke, it follows that

a. luke has a comparative advantage in paintings and jason has a comparative advantage in baking bread.

b. both luke and jason have a comparative advantage in baking bread.

c. both luke and jason have a comparative disadvantage in producing paintings.

d. luke has a comparative advantage in baking bread and jason has a comparative advantage in producing paintings.

e. there is not enough information to answer the question.

+4
Answers (1)
  1. 14 August, 01:15
    0
    The correct answer is option d.

    Explanation:

    Comparative advantage refers to the situation where an individual, firm or nation can produce a good at a relatively lower cost than its competitors.

    Luke can bake bread at a relatively lower opportunity cost while Jason can produce paintings at a relatively lower opportunity cost.

    This implies that Luke has a comparative advantage in baking bread and Jason has a comparative advantage in making paintings.

    Luke specializes in baking bread and Jason specializes in making paintings.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “If luke can bake bread at a lower opportunity cost than jason, and jason can produce paintings at a lower opportunity cost than luke, it ...” 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
Both Schedules M-1 and M-3 require taxpayers to identify book-tax differences as either temporary or permanent. T/F
Answers (1)
The project manager has been negotiating with an integrated circuit vendor for the last six months and has sent the vendor a statement of work. The vendor has responded with a fixed-fee pricing proposal.
Answers (1)
Louis is a student at Texas A&M who just secured a summer internship working for the marketing department of Southwest Airlines. He is assisting Marlene, one of the marketing managers, with a competitive assessment of the U. S. market.
Answers (1)
Determine the net income of a company for which the following information is available for the month of July. Employee salaries expense $199,000 Interest expense 29,000 Rent expense 39,000 Consulting revenue 476,000 g
Answers (1)
Income Statement, Retained Earnings Statement, and Balance Sheet The amounts of the assets and liabilities of Glacier Travel Service at September 30, 20Y6, the end of the current year, and its revenue and expenses for the year.
Answers (1)
New Questions in Business
Suppose a three-person comittee is formed for a culb by drawing names out of a hat. If the expected number of women is 2 and there are 10 men in the culb, how many women are in the club?
Answers (1)
Marin Inc. has an investment in trading securities of $143000. This investment experienced an unrealized loss of $7300 during the current year.
Answers (1)
Jim Bob Airlines has one 57 seat plane. On its last five flights it had 44 passengers from MSY to DFW, 49 passengers from DFW to OKL, 36 passengers from OKL to TUL, 30 passengers from TUL to FWB, and 49 passengers from FWB to MSY.
Answers (1)
All of the following are stakeholders of a firm, except
Answers (2)
A country currently has an outstanding debt of $45 billion. Its current-year expenditures are $12 billion and its tax revenue is $14 billion.
Answers (1)
Home » Business » If luke can bake bread at a lower opportunity cost than jason, and jason can produce paintings at a lower opportunity cost than luke, it follows that a.
Sign Up Forgot Password?