Al and Bill Are the Only Workers in a Small

question 11

Multiple Choice

Al and Bill are the only workers in a small factory that makes geegaws and doodads.Al can make 6 geegaws per hour or 18 doodads per hour.Bill can make 3 geegaws per hour or 12 doodads per hour.Assuming that neither of them finds one task more odious than the other,

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

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Definitions:

Input Standards

are pre-set criteria or benchmarks that specify the expected quality, quantity, and characteristics of inputs to a process or system.

Planning

The process of outlining the steps, resources, and timeline needed to achieve specific goals or objectives.

Control Process

The systematic procedure organizations use to direct, regulate, and manage their operations and resources towards achieving set objectives.

Performance Objectives

Specific, measurable goals set to evaluate the effectiveness of employees or organizational processes.