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:

Other Expenses

Costs not directly related to the production of goods or services, including administrative and general expenses.

Planning Budget

A forecast that outlines future income, expenses, and financial goals, guiding financial decision-making over a specific period.

Fixed Cost

Fixed cost refers to business expenses that remain constant regardless of the level of production or sales, such as rent, salaries, or insurance, integral to budgeting and planning.

Total Expenses

The sum of all costs and expenses, both fixed and variable, incurred by a business during a specific period.