Use the Following Scenario to Answer the Following Questions

question 144

Multiple Choice

Use the following scenario to answer the following questions:
Rosa and Dirk produce basketballs and footballs.Rosa can produce six basketballs per hour or two footballs per hour.Dirk can produce three basketballs per hour or four footballs per hour.
-Based on the scenario,which of the following is true?

• A) Rosa has both an absolute and a comparative advantage in basketball production.
• B) Rosa has both an absolute and a comparative advantage in football production.
• C) Rosa has neither an absolute nor a comparative advantage in basketball production.
• D) Rosa has neither an absolute nor a comparative advantage in football production.
• E) Dirk has both an absolute and a comparative advantage in basketball production.

---

Definitions:

Income Statement

A financial statement showing a firm’s revenues and expenses during a specified period.

Profitability

A measure of the efficiency and effectiveness of a company's operations, indicated by its ability to generate income from its activities.

Summary

A brief statement or account of the main points of something, often used to provide a quick understanding or overview.

Accounting Statements

Financial reports that provide a summary of a company’s financial condition, including income statement, balance sheet, and cash flow statement.