Use the Following Scenario to Answer the Following Questions

question 93

Multiple Choice

Use the following scenario to answer the following questions:
Raven and Drew produce baseballs and golf balls.Raven can produce six baseballs per hour or four golf balls per hour.Drew can produce three baseballs per hour or one golf ball per hour.
-Based on the scenario,Raven has

• A) an absolute advantage in producing baseballs,but not golf balls.
• B) an absolute advantage in producing golf balls,but not baseballs.
• C) an absolute advantage in producing both goods.
• D) an absolute advantage in producing neither good.
• E) no comparative advantage.

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Definitions:

Standard Cost

A predetermined cost of manufacturing, purchasing, or using a product or service, used in budgeting and variance analysis.