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

question 210

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 a greater opportunity cost than Celeste for making saddles.
• B) Mateo's opportunity cost for making saddles is less than Celeste's.
• C) Celeste has a greater opportunity cost than Mateo for making saddles.
• D) Mateo's opportunity cost for making saddles and making spurs are both greater than Celeste's.

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Definitions:

FICA-OASDI

Taxes collected under the Federal Insurance Contributions Act for Old Age, Survivors, and Disability Insurance, commonly known as Social Security.

Cumulative Earnings

The total amount of net income a company has earned over a specific period until the present date, not including dividends.

FICA-OASDI

The Federal Insurance Contributions Act - Old-Age, Survivors, and Disability Insurance, a payroll tax that funds Social Security and Medicare in the United States.

Federal Income Tax

A tax levied by the United States federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.