Sunday, July 3, 2011

Given the information in Exhibit 2-2, which product should Friday (an individual) make?

ECONOMICS

Multiple Choice

Exhibit 2-2

Given the information in Exhibit 2-2, which product should Friday (an individual) make?

a.fishhooks because he can make 30 more per day than Crusoe but only 8 more fishing poles

b.both because he is better at both

c.fishing poles because that is where his comparative advantage lies

d.neither because Crusoe is better at both

e.we cannot tell from the given information

Click here for the SOLUTION

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