ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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00 -Principles of Economics 1|S1 21/22
Time left 0:29:22
Barb and Jim run a business that sets up and tests computers. Assume that Barb and Jim can switch between setting
up and testing computers at a constant rate. The following table applies.
Minutes Needed to
Number of Computers
Set Up or Tested in a
40-Hour Week
Set Up 1
Test 1
Computers Computers
Computer Computer
Set Up
Tested
Barb
48
50
40
Jim
30
40
80
60
Barb has an absolute advantage in
neither setting up nor testing computers and a comparative advantage in setting up computers.
a.
b. both setting up and testing computers and a comparative advantage in setting up computers.
neither setting up nor testing computers and a comparative advantage in testing computers.
С.
d. both setting up and testing computers and a comparative advantage in testing computers.
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Transcribed Image Text:00 -Principles of Economics 1|S1 21/22 Time left 0:29:22 Barb and Jim run a business that sets up and tests computers. Assume that Barb and Jim can switch between setting up and testing computers at a constant rate. The following table applies. Minutes Needed to Number of Computers Set Up or Tested in a 40-Hour Week Set Up 1 Test 1 Computers Computers Computer Computer Set Up Tested Barb 48 50 40 Jim 30 40 80 60 Barb has an absolute advantage in neither setting up nor testing computers and a comparative advantage in setting up computers. a. b. both setting up and testing computers and a comparative advantage in setting up computers. neither setting up nor testing computers and a comparative advantage in testing computers. С. d. both setting up and testing computers and a comparative advantage in testing computers. Next page page
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