Use the Following Scenario to Answer the Questions That Follow

question 63

Multiple Choice

Use the following scenario to answer the questions that follow.
Karl and Pete produce cars and trucks. Karl can produce 10 cars per hour or 5 trucks per hour. Pete can produce 12 cars per hour or 4 trucks per hour.
-Based on the scenario,which of the following is true?

• A) Karl has a comparative advantage in producing cars but not trucks.
• B) Karl has a comparative advantage in producing trucks but not cars.
• C) Karl has a comparative advantage in producing both goods.
• D) Karl has a comparative advantage in producing neither good.
• E) Karl does not have any comparative advantage.

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Definitions:

SWOT Analysis

SWOT Analysis is a strategic planning tool used to identify and understand the Strengths, Weaknesses, Opportunities, and Threats related to business competition or project planning.

Planning Phase

The initial stage of a project or business strategy, where goals are set and tasks are outlined to achieve those goals.

Market-Product Grids

A strategic planning tool used to visualize and analyze relationships between different markets and products, facilitating decisions on where to focus marketing and product development efforts.

Positioning Studies

Research activities aimed at analyzing how a brand or product is perceived in the market relative to competitors, and identifying a strategy to occupy a distinctive place in the minds of consumers.