If Tom Can Produce 20 Multiple Choice Questions or 30

question 42

True/False

If Tom can produce 20 multiple choice questions or 30 true/false questions in an hour,and Mary can produce 15 multiple choice questions or 15 true/false questions in an hour,then Tom has a comparative advantage in writing multiple choice questions.

---

Definitions:

Maximum Capacity

The highest level of output that a company can sustain within a given period without compromising product quality or operational efficiency.

External Financing

Obtaining funds from outside sources, such as loans, stock issues, or bonds, to finance business operations or investments.

Production Capacity

The maximum amount of goods or services that a manufacturing facility can produce over a given period under normal conditions.

External Financing

Funds raised from outside the company, typically through borrowing or selling equity.