Refer to Table 2-18. Which of the following statements is true?
A) Mickey has a comparative advantage in making both products.
B) Minnie has a comparative advantage in making both products.
C) Minnie has a comparative advantage in making hats and Mickey in making umbrellas.
D) Mickey has a comparative advantage in making hats and Minnie in making umbrellas.
Question 2
Refer to Figure 4-10. What area represents the deadweight loss after the imposition of the ceiling?
A) J + H B) C + E C) C + E + J + H D) G + H
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