Bobby is a skilled mechanic who is also good at mowing lawns. he can mow his lawn faster and cheaper than the local lawn care service, weeds. bobby can earn fifty dollars an hour working as a mechanic. weeds charges fifteen dollars an hour to mow lawns. it only takes bobby one hour to mow his lawn, while it would take weeds two. should bobby mow his lawn or hire weeds to do it? a. it is bobby's comparative advantage to work as a mechanic because of the opportunity cost, so he should hire weeds to mow his lawn. b. it is bobby's absolute advantage to mow his own lawn because he can mow it faster than weeds, so he should mow his own lawn. c. since weeds has the absolute advantage in lawn care, bobby should hire them to mow his lawn. d. since weeds has the comparative advantage in lawn care, bobby should mow his own lawn.

Cindy recently played in a softball game in which she misplayed a ground ball for an error. later, in the same game, she made a great catch on a very difficult play. according to the self-serving bias, she would attribute her error to and her good catch to her

When the federal reserve buys bonds from or sells bonds to member banks, it is called monetary policy reserve ratio interest rate adjustment open market operations

Fanning company is considering the addition of a new product to its cosmetics line. the company has three distinctly different options: a skin cream, a bath oil, or a hair coloring gel. relevant information and budgeted annual income statements for each of the products follow. skin cream bath oil color gel budgeted sales in units (a) 110,000 190,000 70,000 expected sales price (b) $8 $4 $11 variable costs per unit (c) $2 $2 $7 income statements sales revenue (a × b) $880,000 $760,000 $770,000 variable costs (a × c) (220,000) (380,000) (490,000) contribution margin 660,000 380,000 280,000 fixed costs (432,000) (240,000) (76,000) net income $228,000 $140,000 $204,000 required: (a) determine the margin of safety as a percentage for each product. (b) prepare revised income statements for each product, assuming a 20 percent increase in the budgeted sales volume. (c) for each product, determine the percentage change in net income that results from the 20 percent increase in sales. (d) assuming that management is pessimistic and risk averse, which product should the company add to its cosmetics line? (e) assuming that management is optimistic and risk aggressive, which product should the company add to its cosmetics line?