Answer:
Georgeland has an absolute but not a comparative advantage in producing clothing.
Explanation:
Absolute advantage is defined as the ability of a firm to produce higher amounts of a product as a result of use of the same resources with other competitors. It is usually bad a result of more efficient production process.
Comparative advantage is the ability of a firm to produce goods at a lower opportunity cost. Therefore they are able to sell at lower price compared to competitors.
Georgeland can produce 18 units of clothe per year while Alland can produce 16 units per year, so Georgeland has absolute advantage.
In producing clothes Georgeland has opportunity cost of 36 units of food which is higher than that of Alland which is 32 units of food. So Georgeland does not have comparative advantage in producing clothes.
Answer:
C: a franchisee
Explanation:
One of the responsibilities of a franchisee is to bear risk of the franchisor.
A franchise is a business relationship where a firm goes into agreement with another firm to represent the former in another geographical region or service. The franchisor is the parent company while the franchisee is the independent agent.
False
A corporation wouldn't have perpetual, or everlasting, life if the death of one of its shareholder could end it. Perpetual means never ending.