Jane Produces Only Corn, Measured in Tons, and Cloth, Measured

question 26

Multiple Choice

Jane produces only corn, measured in tons, and cloth, measured in bolts. For her, the opportunity cost of one more ton of corn is

• A) the ratio of all the bolts of cloth she produces to all the tons of corn she produces.
• B) the ratio of all the tons of corn she produces to all the bolts of cloth she produces.
• C) the inverse of the opportunity cost of one more bolt of cloth.
• D) the same as the opportunity cost of one more bolt of cloth.

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Definitions:

High-Level

A term used to describe activities or plans that are of great importance or operate at a senior decision-making level.

Validated Learning

An approach in lean startup methodology where insights and understanding are gained by trying out initial ideas and iteratively testing them with users.

Prototype

A preliminary model or version of a product used to test and refine design and functionality before final production.

Iteration

The process of repeating a sequence of operations or activities in order to generate a desired outcome or improve a product, system, or design.