In a Single Year,Argentina Can Raise 100 Tons of Beef

question 210

Multiple Choice

In a single year,Argentina can raise 100 tons of beef or produce 1,000 boxes of tulips.In the same growing season,Venezuela can raise 50 tons of beef or produce 750 boxes of tulips.When the two countries begin trading beef for tulips,we expect the total surplus from beef consumption and production to:

• A)fall in Argentina.
• B)rise in Argentina.
• C)stay the same in Venezuela.
• D)either rise or fall in Venezuela.

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Definitions:

Input Prices

The cost of resources used in the production of goods and services.

Total Costs

All costs involved in manufacturing goods or providing services, incorporating both stable and changeable expenses.

Economies of Scale

Economies of scale refer to the benefits companies achieve through large-scale production, which typically results in a reduction of the cost per unit as production volumes increase.

Economies of Scale

Refers to the cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output decreasing with increasing scale.