Comparative and Absolute Advantage Answers

Which describes a way in which consumers most likely benefit from producers’ absolute advantage?

What can a producer gain by specializing?

Which most likely results from producers engaging in specialization?

A producer with a comparative advantage has the ability to produce a good or service at

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Which best explains why producers choose to specialize? Choose two answers.

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Which calculation helps determine which producer has the absolute advantage?

Which scenario is the best example of an opportunity cost?

Which of these best describes an opportunity cost?

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This table shows the number of cookies several bakeries sell each day.Bakery Number of Cookies Sold Mrs. Track’s 90 Chips 100 The Bakeshop 75 Uncle John’s 125 All else being equal, which bakery has the absolute advantage?

Carmen wants to open her own coffee shop. She has narrowed down a list of wholesale retailers and their cost per pound of coffee beans. Whole Sale Company Cost per lb.Café con Leche$8.50Beans Brothers$7.50Colombian Co.$11.25Turkish Coffee Company$6.25Which company has the comparative advantage in cost per pound of coffee?

True or False? Higher opportunity costs equal a greater comparative advantage.

This table shows the production possibility schedule for several toothpaste companies. Toothpaste company Large tubes Small tubes 1 Sparkling 100 per hour 200 per hour 2 Bright White 100 per hour 250 per hour 3 Fresh! 200 per hour 250 per hour 4 Mmmint 150 per hour 150 per hour Use the numbers to place the companies in order of greatest comparative advantage to least comparative advantage in producing small tubes of toothpaste.