Table 9-6 Mateo and Celeste Produce Custom Saddles and Spurs

question 135

Multiple Choice

Table 9-6
Mateo and Celeste produce custom saddles and spurs. Table 9-6 lists the number of saddles and pairs of spurs Mateo and Celeste can each produce in one month.
-Refer to Table 9-6. Select the statement that accurately interprets the data in the table.

• A) Mateo has an absolute advantage in making saddles and spurs.
• B) Celeste has an absolute advantage in making saddles and spurs.
• C) Neither Mateo nor Celeste has an absolute advantage in making saddles.
• D) Neither Mateo nor Celeste has an absolute advantage in making spurs.

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Definitions:

Endowment Effect

A cognitive bias in which individuals value an owned object higher than its market value, simply because they own it.

Affect Heuristic

A mental shortcut that influences decision-making based on emotions and feelings.

Street Smarts

Practical knowledge and experience in dealing with everyday situations or challenges, often contrasted with book learning.

Business Decisions

The choices made by the management of a company regarding strategic planning, operations, and policies.