Regan Grows Flowers and Makes Vases

question 56

Multiple Choice

Regan grows flowers and makes vases.Jayson also grows flowers and makes vases,but Regan is better at producing both.Who has an absolute or comparative advantage in what activity

• A)Regan has an absolute advantage in both activities.
• B)Jayson has an absolute advantage in both activities.
• C)Regan has a comparative advantage in growing flowers.
• D)Jayson has a comparative advantage in growing flowers.

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Definitions:

Annual After-Tax Lease Payment

The yearly lease payment amount after accounting for tax deductions.

Straight-Line Depreciation

A method of depreciation that allocates an equal amount of the asset's cost to each year of its useful life.

Net Advantage To Leasing

The total financial benefits of leasing an asset compared to purchasing it, taking into account all costs and savings.

Resale Value

The estimated market value of an asset at the time of its sale, reflecting what a seller may realistically receive.