Table 3-16 Summary of the Gains from Trade

question 168

Multiple Choice

Table 3-16 Summary of the Gains from Trade

-Refer to Table 3-16.The values in the table represent the amounts of lemonade and pizzas that Alice and Betty can produce in one week without and with specialization and trade.What are Alice and Betty's gains from specialization and trade?

• A) Alice gains 7 pitchers of lemonade and 10 pizzas, while Betty gains 13 pitchers of lemonade and 10 pizzas.
• B) Alice gains 200 pitchers of lemonade and 100 pizzas, while Betty gains 180 pitchers of lemonade and 180 pizzas.
• C) Alice gains 207 pitchers of lemonade and 110 pizzas, while Betty gains 193 pitchers of lemonade and 190 pizzas.
• D) Alice gains 400 pitchers of lemonade and 0 pizzas, while Betty gains 0 pitchers of lemonade and 300 pizzas.

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Definitions:

Functional Structure

An organizational design that groups employees based on their job functions, leading to departments like marketing, finance, and operations.

Organising Function

A management activity that involves arranging resources and tasks to achieve objectives efficiently and effectively.

Management Functions

Fundamental tasks performed by managers, which typically include planning, organizing, leading, and controlling.

Important

Something of great significance or value.