-Use the Above Table

question 197

Multiple Choice

-Use the above table. Assuming constant opportunity costs, the opportunity cost of producing coffee in country Alpha is ________, and the opportunity cost of producing coffee in country Beta is ________.

• A)0.33 ton of cookies; 2 tons of cookies
• B)3 tons of cookies; 0.5 ton of cookies
• C)0.375 ton of coffee; 2.25 tons of cookies
• D)2.67 tons of cookies; 0.44 ton of coffee

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Definitions:

Utility Function

A mathematical representation showing how different combinations of goods or services create levels of happiness or satisfaction for a consumer.

Indifference Curve

A graph showing different bundles of goods between which a consumer is indifferent, meaning they have no preference for one combination over another, all else being equal.

Apples

While commonly known as a fruit, in economics, "apples" could metaphorically refer to any basic commodity used in comparative analysis.

Bananas

A tropical, edible fruit, curved in shape and rich in potassium, produced by various types of large herbaceous flowering plants.