Table 3-23 Assume That the Farmer and the Rancher Can Switch Between

question 88

Multiple Choice

Table 3-23
Assume that the farmer and the rancher can switch between producing pork and producing tomatoes at a constant rate.
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-Refer to Table 3-23. Assume that the farmer and the rancher each has 24 labor hours available. If each person spends all his time producing the good in which he has a comparative advantage, then total production is

• A)4 pounds of pork and 6 pounds of tomatoes.
• B)6 pounds of pork and 8 pounds of tomatoes.
• C)4 pounds of pork and 8 pounds of tomatoes.
• D)6 pounds of pork and 6 pounds of tomatoes.

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Definitions:

Percent Discount

A reduction in price, usually calculated as a certain percentage of the original price.

Full Amount

The complete or total sum of money required or specified, without deductions.

Ratify Contracts

The formal approval or confirmation of a contract, making it officially valid.

Principals

The main parties involved in a transaction or contract, typically who have the primary responsibility and interest in the agreement.