Figure 1-7 Shows the Production Possibilities Boundary for an Economy

question 17

Multiple Choice

Figure 1-7 shows the production possibilities boundary for an economy that produces two goods-cotton and bananas. FIGURE 1-7 Refer to Figure 1-7.A production possibilities boundary is shown for an economy that produces two goods-cotton and bananas,both measured in tonnes produced per year.Suppose this economy moves from point D to point F,where it is then producing bananas exclusively.Which of the following explanations best describes the opportunity cost involved in producing this extra 100 tonnes of bananas?

• A)The opportunity cost is very high in this case because resources that are probably much better suited to producing cotton are now being devoted to producing bananas.
• B)The opportunity cost is very low in this case because resources that are probably much better suited to producing cotton are now being devoted to producing bananas.
• C)The opportunity cost is very high in this case because resources that are probably much better suited to producing bananas are now being devoted to producing cotton.
• D)The opportunity cost is very low in this case because resources that are probably much better suited to producing bananas are now being devoted to producing cotton.
• E)The opportunity cost of producing the extra bananas is independent of the amount being produced.

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Definitions:

Communication Adaptation Strategy

A method used by companies to adjust their marketing messages and communication tactics to accommodate cultural or regional differences within target markets.

Dual Adaptation Strategy

A marketing approach where both the product and the marketing messages are adapted to suit the needs and preferences of different market segments or regions.

Product Extension Strategy

A marketing strategy in which a company introduces additional items in the same product category under the same brand name, such as new flavors, forms, colors, added ingredients, or package sizes.

Transnational Trade Groups

International organizations composed of various countries that aim to promote and facilitate trade and economic cooperation among member nations.