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Hannah Wiggins
on Oct 26, 2024

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Roommates Sarah and Zoe are hosting a Halloween party and have to make food for their guests and costumes for themselves.To finish both tasks as quickly as possible,Sarah and Zoe know that each of them should focus on just one task,but they don't know who should do what.Sarah and Zoe should determine which roommate:

A) has the absolute advantage in cooking.
B) has the comparative advantage in cooking.
C) can cook the most in a given amount of time.
D) can complete the cooking in the least amount of time.

Absolute Advantage

The ability of an individual, company, or country to produce a good or service more efficiently than competitors using the same amount of resources.

Comparative Advantage

The ability of a country or firm to produce a good or service at a lower opportunity cost than its competitors.

Cooking

The process of preparing food for consumption by applying heat, combining ingredients, or both, following various methods and traditions.

  • Understand the concept of absolute and comparative advantage.
  • Determine specialization and trade benefits in a two-party system.
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Dilukshan GangatharanOct 30, 2024
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