If Irene Can Make Either Four Chairs or One Table

question 28

Multiple Choice

If Irene can make either four chairs or one table in an hour and Greg can make either three chairs or two tables in an hour then

• A) Irene has the absolute advantage in the production of chairs.
• B) Irene has the comparative advantage in the production of tables.
• C) Greg has the absolute advantage in the production of chairs.
• D) Greg has the comparative advantage in the production of chairs.

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Definitions:

Marketing Channel

A systems of intermediaries that helps to deliver a product from the producer to the consumer.

Logistics

The comprehensive coordination of complex operations involved in the movement, storage, and processing of goods and materials from origin to consumption.

Logistics

The detailed coordination of a complex operation involving many people, facilities, or supplies, in the movement of products or materials.

Integrated Supply Chain

An integrated supply chain is a cohesive system where every stage, from supplier to customer, is effectively coordinated and managed to optimize efficiency and reduce costs.