Has an absolute advantage in the production of alfalfa, and has an absolute advantage in the production of barley. Musashi's opportunity cost of producing 1 bushel of barley is
bushels of alfalfa, whereas Rina's opportunity cost of producing 1 bushel of barley is
bushels of alfalfa. Because Musashi has a opportunity cost of producing barley than Rina, has a comparative advantage in the production of barley, and has a comparative advantage in the production of alfalfa

Which of the following would not generally be a motive for a firm to hold inventories? a. to decouple or separate parts of the production process b. to provide a stock of goods that will provide a selection for customers c. to take advantage of quantity discounts d. to minimize holding costs e. all of the above are functions of inventory.

Adrawback of short-term contracting as an alternative to making a component in-house is thata. it is the most-integrated alternative to performing an activity so the principal company has no control over the agent. b. the supplying firm has no incentive to make any transaction-specific investments to increase performance or quality. c. it fails to allow a long planning period that individual market transactions provide. d. the buying firm cannot demand lower prices due to the lack of a competitive bidding process.

In 1975, mcdonald’s introduced its egg mcmuffin breakfast sandwich, which remains popular and profitable today. this longevity illustrates the idea of: