Consider Two Individuals - Marquis and Serena - Each of Whom

question 31

Multiple Choice

Consider two individuals - Marquis and Serena - each of whom would like to wear sweaters and eat tasty food.The gains from trade between Marquis and Serena are most obvious in which of the following cases?

• A)Marquis is very good at knitting sweaters and at cooking tasty food,but Serena's skills in both of these activities are very poor.
• B)Marquis and Serena both are very good at cooking tasty food,but neither has the necessary skills to knit a sweater.
• C)Marquis's cooking and knitting skills are very poor,and Serena's cooking and knitting skills are also very poor.
• D)Marquis's skills are such that he can produce only sweaters,and Serena's skills are such that she can produce only tasty food.

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Definitions:

Operating Assets

Assets used in the day-to-day operations of a business to generate revenue, excluding investment and non-operational assets.

Net Operating Income

A company's revenue minus its operating expenses, excluding taxes and interest, signaling its profitability from regular operations.

Throughput Time

The total time taken for a product to pass through a manufacturing process, from start to finish.

Factory Floor

The area where workers manufacture products or operate machinery, typically within a manufacturing plant or factory.