(Figure: Turtletopia and Frogland PPFs) We See That the Two

question 102

Multiple Choice

(Figure: Turtletopia and Frogland PPFs) We see that the two countries _____ benefit from trade, and that Frogland should specialize in producing _____ while Turtletopia should specialize in producing _____.

• A) would not; both products for their own use; both products for their own use
• B) would; neither good; both goods
• C) would; corn; pork
• D) would; pork; corn

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Definitions:

Average Total Cost (ATC)

Total cost divided by output.

Average Variable Cost (AVC)

Variable cost divided by output.

Average Total Cost

The total cost of production divided by the quantity produced, indicating the average cost per unit of output.

Average Variable Cost

Average variable cost (AVC) refers to the total variable costs per unit of output, covering expenses that change with the level of production, such as materials and labor.