Fab Tools Inc

question 2

Multiple Choice

Fab Tools Inc.can produce 150 widgets and 100 axes in a month.Another company AllMyTools Inc.can produce 80 widgets and 50 axes per month.Which of the following statements is true?

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

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Definitions:

Indirect Claim Request

A polite or subdued approach to making a demand or assertion, often used to avoid confrontation.

Problem Statement

A brief summary identifying an issue that needs resolution or a situation that requires enhancement, highlighting the difference between the existing situation and the hoped-for condition.

Second Paragraph

The portion of text that directly follows the first paragraph, often expanding on an introduction or moving into more specific detail.

Claim Message

Communication that asserts a viewpoint or seeks to convince others of something.