Table 2.8 Table 2.8 Shows the Number of Labour Hours Required to of Labour

question 122

Multiple Choice

Table 2.8

Table 2.8 shows the number of labour hours required to produce a motorcycle and a guitar in Ireland and Scotland.
-Refer to Table 2.8. Ireland has a comparative advantage in the production of:

• A)both products.
• B)guitars.
• C)motorcycles.
• D)neither product.

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Definitions:

Unconditional Warranty

A guarantee provided on a product that offers coverage or repair without any conditions or limitations.

Break-even Quantity

is the volume of sales a business must achieve to cover all its costs, without making a profit or a loss.

Marginal Revenue

The additional income generated by selling one more unit of a good or service.

Unit Variable Cost

The cost associated with producing one additional unit of a product, which can include labor, raw materials, and other variable expenses.