Ken and Traci Are Two Woodworkers Who Both Make Tables

question 113

Multiple Choice

Ken and Traci are two woodworkers who both make tables and chairs.In one month,Ken can make 3 tables or 18 chairs,whereas Traci can make 8 tables or 24 chairs..Given this,we know that

• A)Ken has an absolute advantage in chairs.
• B)Ken has a comparative advantage in tables.
• C)Traci has an absolute advantage in chairs.
• D)Traci has a comparative advantage in chairs.

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Definitions:

AVC

Average Variable Cost; the total variable cost divided by the quantity of output produced.

ATC

Stands for "Average Total Cost," which refers to the total cost divided by the quantity of goods produced, in economics.

ATC Curve

Represents the average total cost of production at different levels of output, illustrating how cost per unit changes with changes in output.

Efficiency

Efficiency refers to the optimal use of resources to achieve a desired output with minimal waste or expense, often analyzed in economic, energy, and operational contexts.