Refer to the Table Below

question 9

Multiple Choice

Refer to the table below.Based on their comparative advantages, Pat should specialize in _______, and Corey should specialize in _______.

• A)delivering pizza; making pizza
• B)making pizza; delivering pizza
• C)neither making pizza nor delivering pizza; both making pizza and delivering pizza
• D)both making pizza and delivering pizza; neither making pizza nor delivering pizza

Understand how to calculate cost of goods sold (COGS) from manufacturing data.

Differentiate between manufacturing and non-manufacturing costs.

Calculate raw materials used in production and total manufacturing costs from given data.

Understand the classification of labor costs into direct labor and indirect labor (manufacturing overhead).

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Definitions:

Average Total Cost Curve

A graphical representation showing the average total cost of producing different quantities of a good or service.

Industry Demand Curve

A graphical representation showing the total demand for the products or services of a particular industry at various price levels.

Government Franchising

A process by which a government grants a company the exclusive right to operate, produce, or sell a service within a certain area.

Legal Barriers

Restrictions established by law or regulation that control how businesses operate, often to limit competition or protect consumers.