The Table Given Below Represents the Output Per Hour of Cookies

question 11

Multiple Choice

The table given below represents the output per hour of cookies and chilies in Ohio and Iowa.Table 2.4

-Bob and Bill can make 16 toys each if they devote 8 working hours in a day. Further, Bob can repair 4 cars and Bill can repair 2 cars, if they devote 8 working hours in a day. When these two individuals engage in trade, it would be advantageous for both if:

• A)Bob specializes in the production of toys and Bill specializes in car repairing.
• B)Bob specializes in car repairing and Bill specializes in the production of toys.
• C)they specialize only in car repairing.
• D)they specialize only in the production of toys.
• E)they distribute their working hours evenly between the production of two goods.

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Definitions:

Straight-line Depreciation

A method of depreciating fixed assets evenly across their useful life.

Required Return

The lowest percentage of return per annum that draws in companies or individuals to invest in a particular security or project.

IRR

Internal rate of return; a financial metric used to assess the profitability of investments by calculating the rate of return where net present value of all cash flows (both positive and negative) from a project equals zero.

Project

A temporary endeavor undertaken to create a unique product, service, or result.