Refer to the Information Provided in Table 33

question 276

Multiple Choice

Refer to the information provided in Table 33.1 below to answer the question(s) that follow.
Table 33.1
-Refer to Table 33.1. Guatemala has

• A) a comparative advantage but not an absolute advantage in orange production.
• B) a comparative advantage but not an absolute advantage in banana production.
• C) an absolute advantage and a comparative advantage in banana production.
• D) an absolute advantage and a comparative advantage in orange production.

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Definitions:

Total Manufacturing Costs

The aggregate cost of direct materials, direct labor, and manufacturing overhead incurred to produce finished goods.

Current Asset Items

Assets expected to be converted into cash, sold, or consumed within a year or within the normal operating cycle of a business.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time.

Finished Goods Inventory

Items in a manufacturer's inventory that are completed and ready for sale.