Question 26Please refer to Maxine's & Daisy's PPFs Which good should Daisy specialize in?Group of answer choicesthe good for which she has a higher opportunity costthe good she can produce the most ofthe good for which she has a lower opportunity costthe good for which she has an absolute advantage. Maxine and Daisy are both bakers that make tarts and pies. They have the sameresource: 5 lbs of flour/week. These are their weely PPFS.Maxine's Production Posiblities FrontierDaisy's Production Possibilities Frontierarts202018181616141412 -1210104369 12 15 18 21 24 27 30pies369 12 15 18 21 24 27 30pies

Absolute Advantage states that a person or country should produce that good in which it specializes.…

Answered: Question 26 Please refer to Maxine's &…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question 26

Please refer to Maxine's & Daisy's PPFs

Which good should Daisy specialize in?

Group of answer choices

the good for which she has a higher opportunity cost

the good she can produce the most of

the good for which she has a lower opportunity cost

the good for which she has an absolute advantage.

Maxine and Daisy are both bakers that make tarts and pies. They have the same
resource: 5 lbs of flour/week. These are their weely PPFS.
Maxine's Production Posiblities Frontier
Daisy's Production Possibilities Frontier
arts
20
20
18
18
16
16
14
14
12 -
12
10
10
4
369 12 15 18 21 24 27 30
pies
369 12 15 18 21 24 27 30
pies

Definition Video Definition Ability of a country to produce more output with a given level of input or to produce the same level of output with a lower level of input as compared to the other countries. For example, if Country A produces 200 units with the help of 10 units of labor, and Country B produces 300 units with 10 units of labor, Country A has an absolute advantage in the production of the good. Video

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