Table 2-6 Table 2-6 Shows the Output Per Week of Week

question 19

Multiple Choice

Table 2-6
Table 2-6 shows the output per week of two people,James and Lucy.They can either devote their time to making wagons or making tricycles.
-Refer to Table 2-6.Which of the following statements is true?

• A)Lucy has an absolute advantage in making both products.
• B)James has an absolute advantage in making both products.
• C)Lucy has an absolute advantage in making wagons and James in making tricycles.
• D)James has an absolute advantage in making wagons and Lucy in making tricycles.

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Definitions:

Manufacturing Overhead

All manufacturing costs except direct materials and direct labor.

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