Rusty Can Edit Two Pages in One Minute, and Can

question 6

True/False

Rusty can edit two pages in one minute, and can type 80 words in one minute.Emily can edit one page in one minute and can type 100 words in one minute.Rusty has both an absolute and a comparative advantage in editing and Emily has both an absolute and a comparative advantage in typing.

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Definitions:

Common-Size Statement

A financial analysis tool that displays line items as a percentage of one selected or common figure, facilitating comparisons across different financial periods or companies.

Total Sales

The entirety of a company's revenues generated from the sale of goods or services before any expenses are subtracted.

Du Pont Identity

A financial analysis framework that breaks down return on equity into three components: profit margin, asset turnover, and financial leverage, highlighting how these factors affect a company's overall financial performance.

Return On Equity

An assessment of a firm's efficiency in producing profit from its shareholders' investments.