Table 3-1 -According to Table 3-1:
A)the Potato Farmer Has an Absolute

question 61

Multiple Choice

Table 3-1
$\begin{array}{|l|c|c|c|c|}\hline&\text { Labour hours needed to make } 1 \mathrm{~kg} \text { of: }&&\text { Kgs produced in } 20 \text { hours: }\\\hline & \text { Meat } & \text { Potatoes } & \text { Meat } & \text { Potatoes } \\\hline \text { Potato farmer } & 10 & 5 & 2 & 4 \\\hline \text { Zattle farmer } & 4 & 1 & 5 & 20 \\\hline\end{array}$
-According to Table 3-1:

• A)the potato farmer has an absolute advantage in meat, and the cattle farmer has a comparative advantage in meat
• B)the potato farmer has an absolute advantage in potatoes, and the cattle farmer has a comparative advantage in potatoes
• C)the potato farmer has an absolute advantage in neither goods, and the cattle farmer has a comparative advantage in potatoes
• D)the potato farmer has an absolute advantage in neither goods, and the cattle farmer has a comparative advantage in meat

---

Definitions:

Break-even Point

The level of production or sales at which total revenues equal total expenses.

Unit Sales

The quantity of products sold, typically measured on a per-unit basis.

Margin Of Safety

The difference between actual sales and the break-even point, indicating how much sales can fall before a business incurs a loss.

Net Operating Income

Earnings resulting from the standard operations of a business, without considering taxes and interest expenses.