If Iowa's Opportunity Cost of Corn Is Lower Than Oklahoma's

question 109

Multiple Choice

If Iowa's opportunity cost of corn is lower than Oklahoma's opportunity cost of corn, then

• A)Iowa has a comparative advantage in the production of corn.
• B)Iowa has an absolute advantage in the production of corn.
• C)Iowa should import corn from Oklahoma.
• D)Oklahoma should produce just enough corn to satisfy its own residents' demands.

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Definitions:

Operating Cycle

The duration of time it takes for a company to purchase inventory, sell products, and collect cash from customers.

Average Collection Period

The average number of days it takes for a company to receive payments owed by its customers, indicating the effectiveness of its credit and collection policies.

Inventory Turnover

A figure representing the frequency at which a business's stock is both sold and refilled over an assigned period, showing the adeptness of inventory administration.

Accounts Receivable Turnover

A financial metric that measures how efficiently a company collects payments from its customers by dividing total sales by average accounts receivable.