Table 71 Linda and Sandy Own the Preppy Puppy, a Dog Grooming

question 16

Multiple Choice

Table 7.1
$\begin{array}{|c|c|c|} \hline& \text { Bathing } & \text { Grooming } \\\hline \text { Linda } & 60 & 20 \\\hline \text { Sandy } & 50 & 25 \\\hline\end{array}$
Linda and Sandy own The Preppy Puppy, a dog grooming business. Table 7.1 lists the number of dogs Linda and Sandy can each bathe and groom in one week.
-Refer to Table 7.1.Select the statement that accurately interprets the data in the table.

• A)Linda has a comparative advantage in dog bathing.
• B)Sandy has an absolute advantage in dog bathing.
• C)Sandy has a comparative advantage in dog bathing.
• D)Linda has a comparative advantage in dog grooming and dog bathing.

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Definitions:

Marginal Cost

The change in total cost that arises when the quantity produced is incremented by one unit, essentially the cost of producing one more unit of a good.

Weekly Wage

The total amount of money paid to an employee for work done in a single week.

University

A higher learning and research establishment that grants various academic qualifications across multiple fields of study.

Labor Supply Curve

A graphical representation showing the relationship between the wage rate and the quantity of labor workers are willing to provide, typically upward sloping indicating that higher wages incentivize more labor.