Suppose both Monica and Edith grow roses and make guns. If Monica devotes 10 hours to growing
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Question:
Suppose both Monica and Edith grow roses and make guns. If Monica devotes 10 hours to growing roses, she grows 16 roses, and if she devotes 10 hours to making guns, she produces 4 guns. If Edith divides her 10 hours equally, she produces 12 roses and 6 guns. Identify the correct statement.
a. Edith has an absolute advantage in both growing roses and making guns.
b. Monica has an absolute advantage in both growing roses and making guns.
c. Monica has an absolute advantage in growing Roses, and Edith has an absolute advantage in making guns.
d. Monica has an absolute advantage in making guns, and Edith has an absolute advantage in growing roses.
Related Book For
Microeconomics
ISBN: 9781464146978
1st edition
Authors: Austan Goolsbee, Steven Levitt, Chad Syverson
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