Use the Following to Answer Question

question 43

Multiple Choice

Use the following to answer question:
-(Table: Coffee and Salmon Production Possibilities II) Use Table: Coffee and Salmon Production Possibilities II.This table shows the maximum amounts of coffee and salmon,both measured in pounds,that Brazil and Alaska can produce if they just produce one good.Alaska has an absolute advantage in producing:

• A)coffee only.
• B)salmon only.
• C)both coffee and salmon.
• D)neither coffee nor salmon.

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Definitions:

Average Costs

Calculated by dividing total costs by the total number of units produced, indicating the cost on a per-unit basis.

Produced Units

The number of units of a product that have been completed by a manufacturing process during a specific period.

Relevant Range

The level of activity or volume over which the specific cost assumptions (fixed and variable costs) are valid.

Total Variable Cost

The sum of all costs that vary directly with the level of production or output.