Table 3-3 Assume That Zimbabwe and Portugal Can Switch Between Producing Toothbrushes

question 420

Multiple Choice

Table 3-3
Assume that Zimbabwe and Portugal can switch between producing toothbrushes and producing hairbrushes at a constant rate.

-Refer to Table 3-3.Suppose Zimbabwe decides to increase its production of toothbrushes by 10.What is the opportunity cost of this decision?

• A) 0.3 hairbrush
• B) 3 hairbrushes
• C) 30 hairbrushes
• D) 100 hairbrushes

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Definitions:

Ramifications

A consequence of an action or decision, often complex or unwelcome.

Competitive Price-Taker Model

A market situation where individual firms have no control over the price of a product, typically because of perfect competition.

Competition

The rivalry among businesses to attract customers, striving to achieve such goals as higher sales, market share, and innovation.

Price

The amount of money required to purchase a good or service.