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

question 97

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

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Definitions:

Technological Change

A change in the methods, equipment, and software used by a society, improving efficiency, productivity, and quality of life.

Marginal Cost

The additional cost incurred by producing one more unit of a good or service; essential for making efficient production and pricing decisions.

Output

The amount of goods or services produced by a business, industry, or country.

Profit-Maximizing Rule

A principle that firms apply to determine the level of output at which they will realize the maximum possible profits.