Table 2-19 Table 2-19 Shows the Output Per Month of Month

question 261

Multiple Choice

Table 2-19
Table 2-19 shows the output per month of two people, Wilma and Betty. They can either devote their time to making marble statues or making marble benches.
-Refer to Table 2-19. What is Wilma's opportunity cost of making a statue?

• A) 1/3 of a bench
• B) 3 benches
• C) 6/7 of a statue
• D) 1/2 of a bench

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Definitions:

Equity Method

An accounting method for recording investments in which the investment is initially recorded at cost and subsequently adjusted for the investor's share of the investee's net profits or losses.

Subsidiary Company

An entity that is owned, either fully or partially, by another entity known as the parent company, contributing to the control and business operations as part of a larger corporate structure.

Joint Venture Entity

A business entity formed by two or more companies to undertake a specific business venture together, sharing risks, costs, and rewards.

Business Undertaking

A venture or project that is undertaken by a business or organization, often involving considerable risk.