Table 3-33 Chris and Tony's Production Opportunities

question 121

Multiple Choice

Table 3-33
Chris and Tony's Production Opportunities
-Refer to Table 3-33 Chris and Tony both produce tomatoes and pasta sauce. The table shows their possible production per month if both work the same number of 8 hour days. Which of the following statements is correct?

• A)Tony has a comparative advantage in the production of sauce.
• B)Chris has a comparative advantage in the production of tomatoes.
• C)Tony has an absolute advantage in the production of tomatoes.
• D)Chris has an absolute advantage in the production of tomatoes.

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Definitions:

Creative Selling

Persuasive type of promotional presentation.

Marketing Intermediaries

Businesses or individuals that act as a middleman in the distribution channel, moving products from the producer to the consumer.

Special Discounts

Price reductions offered to customers under specific conditions or during certain times.

Corporate Financing

The methods and sources of raising capital for a company’s operations and investments, including debt and equity financing.