Use the Following to Answer Questions 34-35

question 42

Multiple Choice

Use the following to answer questions 34-35:
Figure 15.8
-(Figure 15.8) . Suppose the food industry is using 4 capital inputs and 4 labor inputs, while the clothing industry is using 1 capital input and 4 labor inputs. It would be a Pareto improvement if the _____ industry gave _____ capital input(s) to the _____ industry in exchange for _____ labor input(s) .

• A) food; 1; clothing; 1
• B) clothing; 1; food; 1
• C) food; 2; clothing; 2
• D) clothing; 1; food; 2

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Definitions:

Flexible Cost-plus Pricing

A pricing strategy where the selling price is determined by adding a specific markup to a product's variable costs, allowing flexibility in pricing.

Pricing Strategies

Tactics used by companies to determine the best price points for their products or services in order to maximize profits and market share.

Rigid Cost-plus Pricing

A pricing strategy where a fixed percentage is added to the total cost of producing a product to determine its selling price, without flexibility for market changes.

Export Markets

Countries or regions where goods and services are sold abroad, outside the producing country's borders.