-In the Table Above, Country B Is Producing 4 Units

question 246

Multiple Choice

-In the table above, country B is producing 4 units of X and 6 units of Y. For country B, the opportunity cost of producing an additional unit of X is

• A) 4 units of Y.
• B) 2 units of Y.
• C) 1 unit of Y
• D) 3/2 units of Y.

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Definitions:

Marginal Revenue

The additional income received from selling one more unit of a good or service; it is a critical concept in deciding the optimal quantity of goods to produce.

Price Discrimination

The practice of charging different prices to different consumers for the same product or service, based on their willingness to pay.

Insurance Rates

Insurance rates are the costs charged by insurance companies to provide coverage against various risks, determined by factors such as risk level, policy type, and coverage amount.

Marginal Revenue

The additional income from selling one more unit of a good; sometimes equal to the price.