Al and Bill Are the Only Workers in a Small

question 8

Multiple Choice

Al and Bill are the only workers in a small factory that makes geegaws and doodads.Al can make 5 geegaws per hour or 20 doodads per hour.Bill can make 3 geegaws per hour or 6 doodads per hour.Assuming that neither of them finds one task more odious than the other,

• A)Bill has a comparative advantage in producing both geegaws and doodads.
• B)Al has a comparative advantage in producing geegaws and Bill has a comparative advantage in producing doodads.
• C)Al has a comparative advantage in producing both geegaws and doodads.
• D)Bill has a comparative advantage in producing geegaws and Al has a comparative advantage in producing doodads.
• E)both have a comparative advantage in producing doodads.

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Definitions:

Management Accounting System

A framework used by organizations to provide financial and non-financial information to managers for decision-making, planning, and control purposes.

Management Accountant

A professional who focuses on providing financial data and analysis to managers within an organization to aid in decision-making.

Computer Technology

The use of computers and software to perform tasks, manage data, and solve problems in various fields including business, science, and engineering.

Operational Tasks

Activities involved in the day-to-day operations of a business, focusing on the production, delivery, and support of products and services.