Fab Tools Inc

question 49

Multiple Choice

Fab Tools Inc.can produce 150 widgets and 100 axes in a month.Another company AllMyTools Inc.can produce 180 widgets and 50 axes per month.Which of the following statements is true?

• A)Fab Tools has a comparative advantage in the production of widgets.
• B)Fab Tools has an absolute advantage in the production of both goods.
• C)AllMyTools has a comparative advantage in the production of widgets.
• D)AllMyTools has an absolute advantage in the production of both goods.

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Definitions:

Cultural Background

The cultural heritage, traditions, practices, and beliefs that contribute to an individual's identity and worldview.

Maintenance

The process of preserving something in a desired condition by performing regular checks and repairs.

Alcohol Free

A term describing products or lifestyles that contain no alcohol, used especially in contexts of beverages, cosmetics, and personal choices.

Drinking

The act of consuming liquids, but often specifically refers to the consumption of alcoholic beverages.