Don Can Produce 10 Pens or 20 Pencils in One

question 2

Multiple Choice

Don can produce 10 pens or 20 pencils in one hour, while Bob can produce 5 pencils or 15 pens in one hour. Which of the following statements is correct?

• A) Bob has an absolute advantage in the production of pencils.
• B) Bob has an absolute advantage in the production of pens.
• C) Bob has a comparative advantage in the production of pencils.
• D) Don has a comparative advantage in the production of pens.
• E) Don does not have a comparative advantage in the production of either good.

Understand the concepts of managerial and technical subsystems within the open-system model.

Grasp the core objectives of the management process in achieving organizational efficiency and effectiveness.

Interpret the formation and purpose of an organization chart.

Comprehend the concepts of division of labor, horizontal specialization, and vertical hierarchy in organizational structures.

---

Definitions:

Finished Goods

Items that have been fully made but remain unsold or not delivered to the final consumer.

First Quarter

It refers to the first three months of a company's fiscal year (January, February, and March in a calendar year), often used in financial reporting.

Sales

Transactions involving the exchange of goods or services for money or other compensation.

First Quarter

The initial three-month period in a fiscal year; often used in financial reporting and analysis.