Table 9-3 Bryce and Tina Are Artisans Who Produce Homemade Candles and Who

question 80

Multiple Choice

Table 9-3

Bryce and Tina are artisans who produce homemade candles and soap. Table 9-3 lists the number of candles and bars of soap Bryce and Tina can each produce in one month.
-Refer to Table 9-3.Select the statement that accurately interprets the data in the table.

• A)Tina has a comparative advantage in making candles.
• B)Bryce has an absolute advantage in making soap.
• C)Bryce has a comparative advantage in making candles.
• D)Bryce has a comparative advantage in making candles and making soap.

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Definitions:

Price-earnings Ratio

A ratio for valuing a company that measures its current share price relative to its per-share earnings.

Weighted-average Shares

A calculation used in finance to adjust the number of outstanding shares for changes over a reporting period, impacting earnings per share calculations.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, representing ownership equity spread among shareholders.

Retained Earnings

The amount of net income left over for the business after it has paid out dividends to its shareholders.