Agnes Can Produce Either 1 Unit of X or 1

question 364

Multiple Choice

Agnes can produce either 1 unit of X or 1 unit of Y in an hour, while Brenda can produce either 2 units of X or 4 units of Y in an hour. The opportunity cost of producing a unit of X is

• A) 1 unit of Y for Agnes and 2 units of Y for Brenda.
• B) 1 hour for Agnes and 1/2 hour for Brenda.
• C) 1 unit of Y for Agnes and 1/2 unit of Y for Brenda.
• D) 1 hour for Agnes and 2 hours for Brenda.

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Definitions:

Heavy Weight Card Stock

A thick, durable paper used for printing high-quality invitations, business cards, and other materials that require a more premium feel.

Penetration Pricing

A pricing strategy where a product is priced lower than the competition to attract customers and gain market share.

Prestige Pricing

A pricing strategy where goods are priced higher to convey a sense of luxury or exclusivity.

Specialty Product Pricing

A pricing strategy applied to products that are unique or considered high-end, often leading to higher prices due to their perceived value or exclusivity.