4. using the same amount of resources, aanand can either build 6 models or prepare 4 experiments, and pam can
either build 9 models or prepare 6 experiments. who has the comparative advantage in building models and
who has the comparative advantage of preparing experiments?
a. pam has a comparative advantage in building models; both people have a comparative advantage in
preparing experiments
b. neither has a comparative advantage in producing either good
c. aanand has a comparative advantage in building models and pam has a comparative advantage in
preparing experiments
d. both have a comparative advantage in producing both goods.

All answers are incorrect.

Explanation:

Comparative advantage is "the ability of an individual or group to carry out a particular economic activity (such as making a specific product) more efficiently than another activity.” Because both Pam and Aanand build models more efficiently than they prepare experiments, they both have a comparative advantage in building models. Your textbook sucks because none of the available answers reflect this. Even if the textbook were incorrectly comparing worker efficiency instead of overall product production efficiency, none of the answers reflect the fact that Pam has comparative advantage in producing both models and experiments. Burn the book, it's demonic and econ is for aspiring business people who will lose their souls and become the bane of the market.

answer: c  

the factory goes out of business, causing the workers to lose their jobs.

explanation:

b is correct

have a cool day