Table 183
-Consider Two Individuals, Nigel and Mia, Who Produce Hair

question 169

Multiple Choice

$\begin{array}{l|c|c|}\hline & \text { Hair Pins/hour } & \begin{array}{c}\text { Bandanas } \\\text { /hour }\end{array} \\\hline \text { Nigel } & 4 & 10 \\\hline \text { Mia } & 9 & 3 \\\hline\end{array}$
Table 18.3
-Consider two individuals, Nigel and Mia, who produce hair pins and bandanas. Nigel?s and Mia?s hourly productivity are shown in Table 18.3. Which of the following is true?

• A)Mia has an absolute advantage in producing hair pins but not bandanas.
• B)Mia has an absolute advantage in producing bandanas but not hair pins.
• C)Mia has an absolute advantage in producing both goods.
• D)Mia does not have an absolute advantage in producing either good.

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Definitions:

Mainframe Computer

A large, powerful computer primarily used by large organizations for bulk data processing, such as census, industry and consumer statistics, and financial transaction processing.

Indirect Manufacturing Cost

Costs in manufacturing that cannot be directly tied to a specific product or job, such as maintenance, supervision, and utility costs; also known as manufacturing overhead.

Direct Manufacturing Cost

These are costs that can be directly traced to the production of specific goods or services, such as raw materials and direct labor.

Differential Costs

The difference in total cost that will result from selecting one choice over another.