Use the Information Below to Answer the Following Questions

question 109

Multiple Choice

Use the information below to answer the following questions.
Fact 2.3.1
In an eight- hour day, Andy can produce either 24 loaves of bread or 8 kilograms of butter.In an eight- hour day, Rolfe can produce either 8 loaves of bread or 8 kilograms of butter.
-From Fact 2.3.1, we know that

• A)Andy has the lower opportunity cost of producing bread, while Andy and Rolfe have equal opportunity costs of producing butter.
• B)Andy has the lower opportunity cost of producing both bread and butter.
• C)Andy has the higher opportunity cost of producing both bread and butter.
• D)Andy has the lower opportunity cost of producing butter, while Rolfe has the lower opportunity cost of producing bread.
• E)Andy has the lower opportunity cost of producing bread, while Rolfe has the lower opportunity cost of producing butter.

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Definitions:

Unimpeded Entry

A market condition where there are no barriers for new firms to enter and compete in the industry.

Purely Competitive Firm

A company that operates in a market where there are many buyers and sellers, none of which can influence market prices significantly.

Long Run

A period of time during which all factors of production and costs are variable, in contrast to the short run where some are fixed.

Market Supply

The total amount of a product or service that is available to consumers, determined by the sum of all individual suppliers' outputs in the market.