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dalvyx [7]
3 years ago
5

It takes Anne 3 hours to make a pie and 4 hours to make a shirt. It takes Mary 2 hours to make a pie and 5 hours to make a shirt

. Anne should specialize in making shirts and Mary should specialize in making pies, and they should trade.A.TrueB.False
Business
1 answer:
mina [271]3 years ago
5 0

Answer:

False

Explanation:

An economic agent should specialise in the production of the good for which it has a comparative advantage in its production.

An economic agent has a comparative advantage in production if it produces at a lower opportunity cost when compared with other economic agents.

Anne's opportunity cost in pie production = 4/3=1.33

Anne's opportunity cost in shirt production = 3/4 = 0.75

Mary's opportunity cost in pie production = 5/2 = 2.5

Mary's opportunity cost in shirt production = 2/5 = 0.4

Anne has a comparative advantage in the production of pies and Mary has a comparative advantage in the production of shirts.

Anne should specialise in pie production and Mary should specialise in shirt production.

I hope my answer helps you

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2 years ago
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The correct answer is B

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3 0
3 years ago
If the administrator prohibits investment advisers in that state from taking custody of customer funds or securities, then the i
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8 0
2 years ago
The Supreme Court reviews only about one percent of the cases submitted by petitioners for review.
Molodets [167]
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2 years ago
g An investor is considering the purchase of 20 acres of land. An analysis indicates that if the land is used for cattle grazing
julia-pushkina [17]

Answer:

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Explanation:

Data given in the question

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