Table 19-6 Mateo and Celeste Produce Custom Saddles and Spurs

question 404

Multiple Choice

Table 19-6
$\begin{array}{|l|l|l|} \hline& \text { Saddles } & \text { Spurs (pairs) } \\\hline \text { Mateo } & 75 & 225 \\\hline \text { Celeste } & 100 & 225 \\\hline\end{array}$ Mateo and Celeste produce custom saddles and spurs. Table 19-6 lists the number of saddles and pairs of spurs Mateo and Celeste can each produce in one month.
-Refer to Table 19-6.Select the statement that accurately interprets the data in the table.

• A) Mateo has an absolute advantage in making saddles and spurs.
• B) Celeste has an absolute advantage in making saddles and spurs.
• C) Neither Mateo nor Celeste has an absolute advantage in making saddles.
• D) Neither Mateo nor Celeste has an absolute advantage in making spurs.

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Definitions:

Marginal Productivity

Marginal productivity refers to the extra output, income, or benefit derived from using an additional unit of a variable factor of production, holding all other inputs constant.

Factors Of Production

The resources used to produce goods and services, traditionally categorized into land, labor, capital, and entrepreneurship.

Rent

Payment made by a tenant, often monthly, to a landlord in exchange for the use of land, a building, or other property.

Income Forms

Various ways through which individuals or entities can receive money, such as wages, salaries, dividends, interest, and rents.