If Toni Has an Absolute Advantage in Both Sewing and Ironing

question 216

Multiple Choice

If Toni has an absolute advantage in both sewing and ironing when compared to Tom,then

• A)they might benefit from trading,but we need more information to determine in which task they should specialise.
• B)Toni cannot benefit from trading with Tom,but Tom can benefit from trading with Toni.
• C)Tom cannot benefit from trading with Toni,but Toni can benefit from trading with Tom.
• D)neither Toni nor Tom can benefit from trading with each other.
• E)Toni should specialise in sewing,and Tom should specialise in ironing.

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Definitions:

Profit Margin

A financial metric indicating the percentage of revenue that exceeds the cost of goods sold, highlighting a company’s profitability.

Net Income

The remaining earnings of a corporation after deducting all expenditures and tax obligations from its revenue.

Net Sales

The revenue generated from sales after deducting returns, allowances for damaged or missing goods, and discounts.

Market/Book Ratio

A financial ratio that compares a company's market value to its book value, providing an indication of investor expectations and valuation.