Given the Production Possibility Tables for First and Second Bakeries

question 105

Multiple Choice

Given the production possibility tables for First and Second Bakeries presented below,what must be true?

• A) First Bakery has a comparative advantage in the production of both goods.
• B) Second Bakery has a comparative advantage in the production of pies.
• C) First Bakery has a comparative advantage in the production of pies.
• D) Neither bakery has a comparative advantage.
• E) Neither bakery has an absolute advantagE.

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Definitions:

Profit-sharing Bonuses

A type of incentive given to employees where they receive a share of the company’s profits, typically as part of their compensation package.

Seniority

The concept of giving preference to employees with longer tenure in aspects of employment such as promotions, pay increases, and layoffs.

Equal Distribution

A principle of fairness where resources, wealth, or opportunities are shared equally among all members of a society or group.

Historical Benchmark

A reference point or standard for comparison derived from past data or trends, used in evaluating current performance or conditions.