Table 18.3 -Consider Two Individuals, Nigel and Mia, Who Produce Hair Pins

question 16

Multiple Choice

Table 18.3
-Consider two individuals, Nigel and Mia, who produce hair pins and bandanas. Nigel's and Mia's hourly productivity are shown in Table 18.3. Which of the following is TRUE?

• A) Nigel has a comparative advantage in producing hair pins but not bandanas.
• B) Nigel has a comparative advantage in producing bandanas but not hair pins.
• C) Nigel has a comparative advantage in producing both goods.
• D) Nigel does not have a comparative advantage in producing either good.

Understand the editorial process, focusing on maintaining the original message's intention while improving clarity and style.

Comprehend the importance of conciseness and precision in business communication.

Grasp the use and implications of various formatting options (boldface, italics, justified margins) in document design.

Acknowledge the significance of effective proofreading strategies to improve the overall quality of the document.

---

Definitions:

Net Operating Income

The total profit of a company after operating expenses are subtracted from total revenue but before deducting taxes and interest.

Absorption

The process in cost accounting of allocating all manufacturing costs, both fixed and variable, to individual units of production.

Variable Costing

A costing method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs, used for internal decision-making processes.

Net Operating Income

The net profit of a company, calculated by deducting operating expenses from the gross profit.