Refer to the Table Below A)delivering Pizza; Making Pizza
B)making Pizza; Delivering Pizza
C)neither Making

question 115

Multiple Choice

Refer to the table below. Based on their comparative advantages, Pat should specialize in _______, and Corey should specialize in _______. $$\begin{array} { | l | c | c | } \hline & \begin{array} { c } \text { Pizzas } \\\text { Made } \\\text { Per Hour }\end{array} & \begin{array} { c } \text { Pizzas } \\\text { Delivered } \\\text { Per Hour }\end{array} \\\hline \text { Corey } & 12 & 6 \\\hline \text { Pat } & 10 & 15 \\\hline\end{array}$$

• A)delivering pizza; making pizza
• B)making pizza; delivering pizza
• C)neither making pizza nor delivering pizza; both making pizza and delivering pizza
• D)both making pizza and delivering pizza; neither making pizza nor delivering pizza

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Definitions:

Substitutes

Pairs of goods for which a rise in the price of one of the goods leads to an increase in the demand for the other good.

Related Diversification

Is used when a corporation believes it can achieve synergy among the various businesses that it owns.

Unrelated Diversification

Unrelated diversification is a corporate strategy involving a firm expanding into business activities that are different from its current operations or markets, aiming to reduce risk through diversification.

Differentiation Strategy

A business approach where a company aims to stand out in the market by offering unique products or services, as opposed to competing mainly on price.