Given the Production Possibility Tables for First and Second Bakeries

question 83

Multiple Choice

Given the production possibility tables for First and Second Bakeries shown, we can determine that: $$\begin{array} { c } { \text { First Bakery } } \quad\quad { \text { Second Bukery } } \\\begin{array} { | c | c | c | c | } \hline \text { Conkies } & \text { Pies } & \text { Conkies } & \text { Pies } \\\hline 0 & 18 & 0 & 9 \\\hline 10 & 12 & 30 & 6 \\\hline 20 & 6 & 60 & 3 \\\hline 30 & 0 & 90 & 0 \\\hline\end{array}\end{array}$$

• A)First Bakery has a comparative advantage in the production of both goods.
• B)Second Bakery has a comparative advantage in the production of pies.
• C)First Bakery has a comparative advantage in the production of pies.
• D)neither bakery has a comparative advantage.

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Definitions:

Goal-Sharing Plans

A type of incentive plan where employees are rewarded if collective goals are achieved, promoting teamwork and collaboration.

Employee Participation

A workplace practice where employees are involved in decision-making processes, potentially improving satisfaction and productivity.

Phantom Stock Plan

A type of employee benefit plan that gives selected employees many of the benefits of stock ownership without giving them any company stock, often tied to the performance or value of the company's stock.

Company Stock

Shares of ownership in a corporation, representing a claim on part of the corporation's assets and earnings.