Table 3: Production Information Tacos Enchiladas Ben Madysen 24 Figure 3 Tacos Y
ID: 1141557 • Letter: T
Question
Table 3: Production Information Tacos Enchiladas Ben Madysen 24 Figure 3 Tacos Ys ESegment.A tCSegment B Segment D X2 Enchiladas GRAPH IS NOT DRAWN TO SCALE BUT IS ILLUSTRATIVE OF TABLE. Using the information in Table 3, when the price of tacos is $3, and the price of enchiladas is also $2, then Ben will supply only tacos and no enchiladas, but Madysen will supply only enchiladas Madysen will supply only tacos and no enchiladas, but Ben will supply only enchiladas Neither Ben or Madysen will supply tacos, both will supply only enchiladas Madysen and Ben will both supply only tacos and no enchiladas Not enough information has been provided to determine what Ben and Madysen will doExplanation / Answer
The asnwer is A - ) Ben will supply only tacos and no enchiladas , but Madysen will supply only enchiladas.
becasue using the concept of comparative advantage, we can conclude that , Ben has a comparative advantage in producing Tacos and Madysen has a comparative advantage in producing enchiladas. so when they engage in trade, they only produce the good in which they has a comparative advantage. so Ben will supply Tacos and Madysen will supply enchiladas.
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