-Huey and Steve Can Grow Potatoes or Tomatoes

question 247

Multiple Choice

-Huey and Steve can grow potatoes or tomatoes.The table above shows the pounds of potatoes and tomatoes Huey and Steve can grow in a week.Based on the table,which of the following statements is correct?

• A) Steve has an absolute advantage in both potatoes and tomatoes.
• B) Steve has a comparative advantage in both potatoes and tomatoes.
• C) Steve has an absolute advantage in potatoes only.
• D) Huey has an absolute advantage in potatoes only.
• E) Huey has an absolute advantage in both potatoes and tomatoes.

Analyze the cost-minimization strategy of a firm based on the marginal product and price of inputs.

Understand how changes in input prices affect a firm's production choices.

Identify how changes in technology or productivity impact production methods.

Distinguish between economic costs, total revenue, and profit in business operation contexts.

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Definitions:

Factory Overhead Costs

All indirect costs associated with manufacturing, excluding direct materials and direct labor costs, such as utilities, depreciation, and supervisory salaries.

Direct Labor Hours

The total hours of labor directly involved in manufacturing a product or providing a service, often used for costing purposes.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the cost of the materials and labor directly used to create the product.

Finished Goods

Goods that are finished with production and available for purchase.