Table 3.3 -Consider Two Individuals, Nigel and Mia, Who Produce Hair Pins

question 2

Multiple Choice

Table 3.3

-Consider two individuals, Nigel and Mia, who produce hair pins and bandanas. Nigel's and Mia's hourly productivity are shown in Table 3.3. Which of the following is true?

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

Comprehend the impact of layout designs in manufacturing processes including product, process, and customer-oriented layouts.

Recognize the significance of human factors in production and manufacturing environments.

Identify the differences and applications of intermittent and continuous production systems in service and manufacturing businesses.

Grasp the integration and benefits of using CAD (Computer-Aided Design) and CAM (Computer-Aided Manufacturing) technologies in modern production facilities.

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Definitions:

Variable Cost

Costs that vary in total in direct proportion to changes in the level of activity or production volume.

Differentiates

Distinguishes or separates entities or products by characteristics, qualities, or features, making them distinctive or unique in the market.

Opportunity Cost

The price paid for missing out on the alternative that ranks second best when deciding.

Excess Capacity

Refers to a situation where a company has more production ability than is necessary for the current level of demand.