Reference no: EM13176894
PIZZAS made per hour PIZZAS dilivered per hour
Corey 12 6
Pat 10 15
1.Refer to the figure above. According to the data, Corey has an absolute advantage in
A. the production of pizza.
B. neither production of pizza nor delivering pizza.
C. delivering pizza.
D. both production of pizza and delivering pizza.
2.Refer to the figure above. According to the data, Pat has an absolute advantage in
A. the production of pizza.
B. neither production of pizza nor delivering pizza.
C. delivering pizza.
D. both production of pizza and delivering pizza.
3.Refer to the figure above. Corey's opportunity cost of producing an extra pizza is delivering
______ pizzas.
A. 2
B. 3/2
C. 2/3
D. 1/2
4.Refer to the figure above. Corey's opportunity cost of delivering an extra pizza is producing
______ pizzas.
A. 6
B. 12
C. 2
D. 1/2
5.Refer to the figure above. Pat's opportunity cost of producing an extra pizza is delivering
______ pizzas.
A. 3
B. 2
C. 3/2
D. 2/3
6.Refer to the figure above. Pat's opportunity cost of delivering an extra pizza is producing
_____ pizzas.
A. 12
B. 10
C. 3/2
D. 2/3
7.Refer to the figure above. The comparative advantage for pizza production belongs to__________ and the comparative advantage for pizza delivery belongs to __________.
A. Corey; Corey
B. Pat; Pat
C. Pat; Corey
D. Corey; Pat
8.Based on their comparative advantages, Pat should specialize in _______ while Coreyshould specialize in _______
A. pizza delivery; pizza production
B. pizza production; pizza delivery
C. neither; both
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