Use the Following to Answer Questions: Table: IPhone and IPod

question 78

Multiple Choice

Use the following to answer questions: Table: iPhone and iPod Production $$\begin{array} { l c c } \hline & \text { One iPhone } & \text { One iPod } \\\hline \text { Canadian labor units } & 3 & 4 \\\text { United States labor units } & 2 & 2 \\\hline\end{array}$$
-(Table: iPhone and iPod Production) According to the table on iPhone and iPod production, the opportunity cost of producing one iPhone is:

• A) 4/3 of one iPod for Canada, and two iPods for the United States.
• B) two iPods for Canada, and four iPods for the United States.
• C) 3/4 of one iPod for Canada, and one iPod for the United States.
• D) one iPod for Canada, and 3/4 of one iPod for the United States.

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Definitions:

R&D

Stands for Research and Development, which refers to investigative activities a business conducts to improve existing products and procedures or to lead to the development of new products and procedures.

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, representing the actual profitability of a company beyond just its accounting profits.

Inverted-U Theory

A hypothesis suggesting that a relationship between two variables follows an upside-down U shape, often applied to the correlation between productivity and stress levels.

R&D Expenditures

Financial investments made by firms, governments, or institutions in research and development activities aimed at innovation, creating new products, or improving existing ones.