Mikhail and Stefan Are Both Artists Who Can Create Sculptures

question 104

Multiple Choice

Mikhail and Stefan are both artists who can create sculptures or paintings each day.The following table describes their maximum outputs per day.
Use this table to answer the following questions.
-Based on the table,does Mikhail or Stefan have a comparative advantage?

• A) Yes,Mikhail has a comparative advantage in both sculptures and paintings.
• B) Yes,Stefan has a comparative advantage in both sculptures and paintings.
• C) Yes,Mikhail has a comparative advantage in paintings,and Stefan has a comparative advantage in sculptures.
• D) Yes,Mikhail has a comparative advantage in sculptures,and Stefan has a comparative advantage in paintings.
• E) No,neither has a comparative advantage.

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Definitions:

WACC

The Weighted Average Cost of Capital (WACC) represents the expected average return rate a company owes its security holders for financing its assets.

NPV

Net Present Value (NPV) is a financial metric used to evaluate the profitability of an investment, calculated by subtracting the present value of cash outflows from the present value of cash inflows over a period of time.

IRR

Utilized in assessing investment opportunities within capital budgeting, the Internal Rate of Return signifies the estimated profit rate of future investments.

Conflict Resolved

A situation wherein a disagreement, dispute, or discord has been successfully addressed, negotiated, and settled among parties involved.