Business, 19.01.2021 19:00 JessicaSontay8841
Meagan, a contractor, is hired to install cabinets in a new home and has to decide whether to build the cabinets herself or purchase them from a local cabinet shop.
a. Meagan should build the cabinets herself only if
a- the cabinet maker has a comparative advantage in the production of cabinets.
b- she has a comparative advantage in the production of cabinets.
c- she has an absolute advantage in the production of cabinets.
d- the cabinet maker has an absolute advantage in the production of cabinets.
b. If the cabinet maker is foreign rather than local, the answer to part a
a- does change regardless of trade costs.
b- does not change regardless of trade costs.
c- does change as long as trade costs are negligible.
d- does not change as long as trade costs are negligible.
Answers: 1
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