Homer and Teddy Are Stranded on a Desert Island

question 191

Multiple Choice

Homer and Teddy are stranded on a desert island. To feed themselves each day they can either catch fish or pick fruit. In a day, Teddy could pick 60 pieces of fruit or catch 20 fish. Homer could pick 100 pieces of fruit or catch 150 fish. Which of the following statements is CORRECT?

• A) Homer has an absolute advantage in catching fish and Teddy has an absolute advantage in picking fruit.
• B) Homer has an absolute advantage in picking fruit and Teddy has an absolute advantage in catching fish.
• C) Homer has an absolute advantage in both catching fish and picking fruit.
• D) Teddy has an absolute advantage in both catching fish and picking fruit.

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Definitions:

Organizational Outputs

The results, products, or services that are produced by an organization in fulfilment of its goals and objectives.

Technology

Utilizing scientific understanding for real-world applications, particularly within the industrial sector.

Competitive Advantage

An attribute or set of attributes that allows an organization to outperform its competitors, including cost structure, product offerings, market positioning, and customer service.

Core Competency

Fundamental strengths or strategic advantages of a business, specifically those that allow it to stand out from competitors and deliver value to customers.