Suppose John and Joe Each Have Different Production Possibility Frontiers;

question 38

Multiple Choice

Suppose John and Joe each have different production possibility frontiers; John specializes in cloth and Joe specializes in corn.John's island unexpectedly has exceptionally good weather, and suddenly he is twice as productive in the production of both corn and cloth.Select the best statement.

• A)As a result, John will have an absolute advantage in both corn and cloth.
• B)There will be a change to the goods in which John and Joe specialize, because John's opportunity cost of corn has decreased.
• C)As a result, it is possible that John and Joe will switch the goods in which they specialize.
• D)There will be no change to the goods in which John and Joe specialize, because John's comparative advantage has not changed.
• E)This is an example of unemployed resources becoming employed.

Understand the significance of cash flow activities including operating, investing, and financing activities.

Evaluate company performance and financial health through ratio analysis.

Identify the components and significance of the Du Pont identity in analyzing return on equity.

Comprehend the process and implications of financial statement analysis for decision-making.

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Definitions:

Competitive Sales Position

The strategic standing of a product or service in the marketplace as compared to its competitors, often determined by factors like price, quality, and brand loyalty.

Workload Method

A formula-based method for determining the size of a salesforce that integrates the number of customers served, call frequency, call length, and available selling time to arrive at a figure for the salesforce size.

Formula-Based Method

A systematic approach to problem-solving or decision-making that uses a specific mathematical formula to determine outcomes.

Salesforce Size

The number of individuals in a company's sales team, which can impact the firm's ability to reach potential customers and achieve sales targets.