Table 19-6 Mateo and Celeste Produce Custom Saddles and Spurs

question 39

Multiple Choice

Table 19-6
$\begin{array}{|l|l|l|} \hline& \text { Saddles } & \text { Spurs (pairs) } \\\hline \text { Mateo } & 75 & 225 \\\hline \text { Celeste } & 100 & 225 \\\hline\end{array}$ Mateo and Celeste produce custom saddles and spurs. Table 19-6 lists the number of saddles and pairs of spurs Mateo and Celeste can each produce in one month.
-Refer to Table 19-6.Select the statement that accurately interprets the data in the table.

• A) Celeste has a comparative advantage in making saddles.
• B) Mateo has an absolute advantage in making spurs.
• C) Mateo has a comparative advantage in making saddles.
• D) Mateo has a comparative advantage in making saddles and making spurs.

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Definitions:

Assets and Liabilities

A financial accounting term referring to a company's resources (assets) and obligations (liabilities).

Bookkeeping Accounts

The records of the financial transactions and positions of a business, systematically organized for reporting and analysis.

Double-entry Bookkeeping

An accounting practice where every financial transaction is entered as both a debit in one account and an equivalent credit in another, ensuring the books are always balanced.

Revenues and Expenses

Financial terms referring to the income generated from business activities (revenues) and the costs incurred (expenses) during a specified period.