Use the Following Scenario to Answer the Next Eight Questions

question 61

Multiple Choice

Use the following scenario to answer the next eight questions:
Rosa and Dirk produce basketballs and footballs. Rosa can produce six basketballs per hour or two footballs per hour. Dirk can produce three basketballs per hour or four footballs per hour.
-Based on the scenario,which of the following is true?

• A) Rosa has a comparative advantage in producing basketballs but not footballs.
• B) Rosa has a comparative advantage in producing footballs but not basketballs.
• C) Rosa has a comparative advantage in producing both goods.
• D) Rosa has a comparative advantage in producing neither good.
• E) Rosa does not have any absolute advantage.

Understand how to effectively use resources in marketing efforts.

Recognize the importance of conducting a SWOT analysis for strategic decision-making.

Evaluate different methods of entering an international market and their associated risks.

Understand the significance of competition analysis in market entry.

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Definitions:

Scanlon Plan

A participative management approach that focuses on improving productivity and sharing the resulting cost savings with employees.

Collective Stock Options

A form of employee incentive where groups of workers are granted options to buy company stock at a discounted price.

Profit-Sharing Plan

A company program that gives employees a share in the company’s profits based on its quarterly or annual earnings, serving as a tool to motivate and reward employees.

Employee Stock Ownership Plan

A program that provides a company's workforce with an ownership interest in the company through the acquisition of stocks.