-Based on the Information in Table 35

question 95

Multiple Choice

-Based on the information in Table 35.1,assume China and the United States have the same amount of resources with which to produce soybeans and computers and they produce no other goods.The opportunity cost of producing 1 computer in China is

• A)1/3 of a ton of soybeans.
• B)1/4 of a ton of soybeans.
• C)3 tons of soybeans.

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Definitions:

Economic Profits

The difference between total revenue and total costs, including both explicit and implicit costs, reflecting the total financial gain of a business beyond breaking even.

Perfect Competitors

Entities in a market where no single buyer or seller has the power to influence the market price due to the industry's homogeneous nature and the presence of many participants.

ATC

Average Total Cost, which is calculated by dividing the total cost of production by the quantity of output produced.

Influence on Price

The ability of buyers or sellers to affect the price of a good or service in the market, often due to factors like monopoly power, supply and demand dynamics, or government intervention.