Table 9-10 Table 9-10 Shows the Output Per Week for Week

question 133

Essay

Table 9-10
Table 9-10 shows the output per week for pens and pencils by Tran and Farah.
-Refer to Table 9-10.
a. Which person has an absolute advantage in the production of pens? pencils?
b. Which person has a comparative advantage in the production of pens?
c. Which person has a comparative advantage in the production of pencils?

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Definitions:

Production Technique

Production technique refers to the method or process used in transforming inputs into outputs in the production of goods or services.

Total Profits

The total income of a business after all expenses have been deducted from total revenues.

Production Techniques

Methods and processes used in the transformation of inputs into outputs or goods and services by a firm.

Widgets

A generic term often used to describe an unspecified or hypothetical manufactured product.