Author Question: A person has a comparative advantage in an activity whenever she A) has an absolute advantage in ... (Read 161 times)

cdr_15 · **on:** Jun 29, 2018

A person has a comparative advantage in an activity whenever she

A) has an absolute advantage in the activity.
B) can perform the activity at a lower opportunity cost than another person can.
C) can do the activity in less time than anyone else.
D) can do everything better than anyone else.

Question 2

A tit-for-tat strategy is one in which oligopolies

A) cooperate as long as other members cooperate, but if anyone cheats, they cut the price until the cheater reverts to cooperation.
B) cooperate almost all of the time, but occasionally do not cooperate in order to fool the antitrust authorities.
C) keep cutting prices to punish rivals until the competitive price is reached.
D) try to avoid the problems of the prisoners' dilemma, but actually make themselves worse off.