Mike and Sandy Are Two Woodworkers Who Both Make Tables

question 171

Multiple Choice

Mike and Sandy are two woodworkers who both make tables and chairs.In one month,Mike can make 6 tables or 18 chairs,where Sandy can make 5 tables or 25 chairs.What is the opportunity cost of 1 chair

• A)1/5 table for Mike and 1/3 table for Sandy
• B)5 tables for Mike and 3 tables for Sandy
• C)1/3 table for Mike and 1/5 table for Sandy
• D)3 tables for Mike and 5 tables for Sandy

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Definitions:

Demand Instrument

A type of draft that allows the payee to demand payment at any time from a holder.

Payee

The individual or entity to whom a payment is to be made or who will receive the payment.

Subsequent Holder

An individual or entity that acquires a negotiable instrument after it has been initially issued.

Simple Contracts

Contracts that can be oral or written, not formalized by seal, and recognized by courts if they meet basic requirements like offer, acceptance, and consideration.