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Huey and Steve Can Grow Potatoes or Tomatoes

question 84

Multiple Choice

$\begin{array} { l | c c c } & \begin{array} { l } \text { Potatoes } \\\text { (pounds) }\end{array} && \begin{array} { c } \text { Tomatoes } \\\text { (pounds) }\end{array} \\\hline \text { Huey } & 12 & \text { or } & 8 \\\text { Steve } & 6 & \text { or } & 2\end{array}$
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Huey and Steve can grow potatoes or tomatoes. The table above shows the pounds of potatoes and tomatoes Huey and Steve can grow in a week. Based on the table, Huey's opportunity cost of producing one pound of tomatoes is

• A)0.66 pound of potatoes.
• B)0, because he has an absolute advantage in it.
• C)1.0 pound of potatoes.
• D)1.5 pounds of potatoes.
• E)0, because he has a comparative advantage in it.

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Definitions:

Corridor Principle

A theory suggesting that once entrepreneurs embark on a venture, they are likely to encounter unforeseen opportunities and paths that were not visible to them before starting the venture.

Logistics

The management of the flow of goods, information, and other resources between points of origin and consumption to meet customer requirements.

Fast-Growth Start-Ups

Young companies that experience rapid growth in terms of revenue and market size due to innovative products or services.

Startup

A company in the initial stages of operations, often characterized by innovations and fast growth, aiming to meet a marketplace need by developing or offering a new product or service.