Suppose That, on a Particular Saturday, Mark Zuckerberg and Bill

question 9

Multiple Choice

Suppose that, on a particular Saturday, Mark Zuckerberg and Bill Gates can either plant trees or spread mulch in their gardens. Their maximum output per day is listed in the following table, along with spaces where you can calculate the opportunity cost. Who has an absolute advantage in spreading mulch? $$\begin{array} { | l | l | l | l | l | } \hline & \begin{array} { l } \text { Trees } \\\text { Phanted }\end{array} & \begin{array} { l } \text { Opportunity } \\\text { Cost of 1 } \\\text { Tree }\end{array} & \begin{array} { l } \text { Amount } \\\text { of Mulch } \\\text { Spread } \\\text { (incubic } \\\text { yards) }\end{array} & \begin{array} { l } \text { Opportumity } \\\text { Cost of } \\\text { Spreading 1 } \\\text { Cubic Yard } \\\text { of Mulch }\end{array} \\\hline \text { Zuckerberg } & 20 & & 30 & \\\hline \text { Gates } & 15 & & 30 & \\\hline\end{array}$$

• A) Zuckerberg has the advantage because he gives up fewer trees each time he spreads 1 cubic yard of mulch.
• B) Gates has the advantage because he gives up fewer trees each time he spreads 1 cubic yard of mulch.
• C) Zuckerberg has the advantage because he gives up more trees each time he spreads 1 cubic yard of mulch.
• D) Neither has an absolute advantage in spreading mulch.
• E) Both parties have an absolute advantage in planting trees.

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Definitions:

Company Funds

Monetary resources owned or held by a company, often used for operational costs, investments, expansion, and other financial activities within the business.

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A strategic approach to managing a company's interactions with current and future customers, often involving the use of technology to organize, automate, and synchronize sales, marketing, customer service, and technical support.