Question

Roger can use his existing resources to produce the following combinations of goods. Based on this information, which of the following statements is true?
a) The opportunity cost is constant for producing bicycles

b) Roger should specialize in bicycles

c) Roger should specialize in skateboards

d) the opportunity cost of the third bicycle is five skateboards

e) Roger enjoys an absolute advantage in the production of skateboards

Answer 1

The answer choice which is true that Roger enjoys an absolute advantage in the production of skateboards

What is absolute advantage?

Absolute advantage can be defined as the ability of a party to produce a good or service more efficiently than its competitors.

In conclusion, Roger enjoys an absolute advantage in the production of skateboards

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