Table 24 Table 2

question 166

Multiple Choice

Table 2.4 Table 2.4 shows the output per week of two jewellers, Serena and Haley.They can either devote their time to making bracelets or making necklaces.
-Refer to Table 2.4.Which of the following statements is true?

• A)Haley has an absolute advantage in making both products.
• B)Serena has an absolute advantage in making both products.
• C)Haley has an absolute advantage in making bracelets and Serena in making necklaces.
• D)Haley has an absolute advantage in making necklaces and Serena in making bracelets.

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Definitions:

Friendly Merger

A merger agreed upon by all parties involved, where the companies willingly combine due to perceived mutual benefits.

Hostile Merger

A takeover attempt that is made against the wishes of the target company's management and board of directors.

Merger Negotiations

Discussions and strategic planning between two or more companies with the goal of combining their operations, typically to achieve synergies.

Activist Investors

Investors who use an equity stake in a corporation to put pressure on its management to enact changes they believe will increase shareholder value.