The Following Table Shows Output Per Hour for Fred and Barney

question 94

Essay

The following table shows output per hour for Fred and Barney who mow lawns and trim hedges:
What is the opportunity cost of mowing a lawn for Fred? What is the opportunity cost of trimming a hedge for Fred? Who has a comparative advantage in mowing lawns? How can you tell?

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Definitions:

Inventory Increase

This refers to a situation where the quantity or value of inventory items held by a company grows from one accounting period to another.

Operating Activities

Business activities directly related to the production and delivery of goods and services, generating the primary revenue stream.

Ending Inventory

The cost of merchandise on hand for selling when an accounting cycle ends.

Cost of Goods Sold

The immediate expenses associated with manufacturing goods that a company sells.