Question 20 1 pts Table 3-10 Juanita and Shantala run a business that programs a

Question

Question 20 1 pts Table 3-10 Juanita and Shantala run a business that programs and tests cellular phones. Assume that Juanita and Shantala can switch between programming and testing cellular phones at a constant rate. The following table applies. Number of Cellular Phones Programmed or Tested in a 40-Hour Week Cellular PhonesCellular Phones Minutes Needed to Test 1 Program 1 Cellular PhoneCellular Phone Programmed 160 240 Tested 1200 600 2 uanita hantala 10 4 Refer to Table 3-10. Shantala has an absolute advantage in programming cellular phones and a comparative advantage in testing cellular phones. O testing cellular phones and a comparative advantage in testing cellular phones. testing cellular phones and a comparative advantage in programming cellular phones. O programming cellular phones and a comparative advantage in programming cellular phones.

Explanation / Answer

Ans: programming cellular phones and a comparative advantage in programming cellular phones.

Explanation:

Since Shantala programe cellular phone in more quantities in absolute term than Junita, thats why Shantala hasan absolute advantage in programming cellular phone.

Shantala's opportunit cost of programming 1 cellular phone = 600 / 240 = 2.5 cellular phone testing

Jaunita's opportunit cost of programming 1 cellular phone = 1200 / 160 = 7.5 cellular phone testing

Shantala's opportunit cost of 1 cellular phone testing = 240 / 600 = 0.4 cellular phone programmed

Junita's opportunit cost of 1 cellular phone testing = 160 / 1200 = 0.13 cellular phone programmed

Thus, Shantala has comparative advantage in programming cellular phone. Because the Shantala programe cellular phone at lower opportunity cost than Junita. And, Junita has comparative advantage in cellular phone testing

Thus, the last option is correct answer.

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