Table 2.1.Output Possibilities of the U.S.and the U.K

question 45

Multiple Choice

Table 2.1.Output Possibilities of the U.S.and the U.K.

-Referring to Table 2.1,the United States has the absolute advantage in the production of:

• A) Steel
• B) Televisions
• C) Both steel and televisions
• D) Neither steel nor televisions

---

Definitions:

Indirect Cost

Costs not directly traceable to a specific product or project, such as utilities or rent.

Contribution Margin

The difference between sales revenue and variable costs, indicating how much contributes to covering fixed costs and generating profits.

Direct Manufacturing Cost

Costs that are directly attributable to the production of a specific product, including direct materials and direct labor.

Indirect Manufacturing Cost

Costs related to production that are not directly associated with the product, such as maintenance, supervision, and utilities.