$\begin{array}{lcc}&One ~Nigerian~ Worker&One ~Romanian~ Worker\\Basketballs&10 & 4 \\ Barbie ~Dolls&20 & 6\end{array}$

question 215

Multiple Choice

$\begin{array}{lcc}&One ~Nigerian~ Worker&One ~Romanian~ Worker\\Basketballs&10 & 4 \\ Barbie ~Dolls&20 & 6\end{array}$
-Romania has a comparative advantage in the production of

• A)basketballs.
• B)Barbie dolls.
• C)both basketballs and Barbie dolls.
• D)neither basketballs nor Barbie dolls.

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Definitions:

Sunk Cost

Expenses that have been paid and cannot be retrieved, and therefore, should not impact upcoming business strategies.

Opportunity Cost

The benefit foregone by choosing one alternative over another.

Financing Costs

Expenses incurred by an entity in borrowing funds, including interest, fees, and other charges associated with the issuance of debt.

Incremental Cash Flow

The additional cash flow generated by a company from a new project or investment, after accounting for expenses.