Use the Table Below to Choose the Correct Answer

question 189

Multiple Choice

Use the table below to choose the correct answer. The table outlines the production possibilities of Robinson Crusoe and Joe Friday. If Crusoe and Friday want to maximize their consumption possibilities,

• A) Crusoe should specialize in producing good X and Friday in producing good Y, but no trade should be allowed.
• B) Crusoe should specialize in producing good X and Friday in producing good Y; trade should occur to maximize joint consumption.
• C) Crusoe should specialize in producing good Y and Friday in producing good X; trade should occur to maximize joint consumption.
• D) both individuals should strive for self-sufficiency, which always maximizes output.

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Definitions:

Growth Strategy

Plans and actions designed to increase the size, revenue, and market presence of a business.

International Students

Individuals who move to a different country than their own for the purpose of pursuing education.

Market Development

A strategy aimed at entering new markets or segments to expand a company’s customer base for its current products or services.

BCG Portfolio Analysis

A strategic business tool developed by the Boston Consulting Group to help organizations prioritize which products or units to invest in based on market growth and market share.