Absolute and Comparative Advantage Problems For each of the next four problems, answer the three letters below (make sure you show your work to receive full credit): Whether the problem is an input or out. Which entity has the absolute advantage in each item (for example, Dr. Rhine has the absolute advantage in cleaning dishes while his wife has the absolute advantage in laundry). Which entity has the comparative advantage for the products

Which of the following statements is correct? stockholders should generally be happier than bondholders to have managers invest in risky projects with high potential returns as opposed to safe projects with lower expected returns. potential conflicts between stockholders and bondholders are increased if a firm's bonds are convertible into its common stock. takeovers are most likely to be attempted if the target firm’s stock price is above its intrinsic value. one advantage of operating a business as a corporation is that stockholders can deduct their pro rata share of the taxes the firm pays, thereby eliminating the double taxation investors would face in a partnership.