(Table: Fish and Coconut Production Possibilities) Look at the Table

question 107

Essay

(Table: Fish and Coconut Production Possibilities) Look at the table Fish and Coconut Production Possibilities.The table shows the maximum amount of fish and coconuts that Tom and Hank can produce if they produce only one good.Tom produces and consumes 9 fish and 2 coconuts, and Hank produces and consumes 3 fish and 2 coconuts.Now they decide to engage in trade.Which of the following statements is incorrect?
A.For both to become better off, each should specialize in the production of some good.However, since Hank is equally productive in both goods, it doesn't matter which good each specializes in.
B.For both to become better off, each should specialize completely in the production of the good in which he has a comparative advantage.
C.After trade it is possible for Tom to consume 9 fish and 2.5 coconuts and for Hank to consume 3 fish and 2.5 coconuts.
D.For each individual, the consumption point after trade will lie outside that individual's production possibility frontier.

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Definitions:

Extraorganizational

Extraorganizational refers to activities, practices, or influences that exist or occur outside the boundaries of a specific organization.

Ad Hoc Reports

Custom reports generated to meet specific criteria at a particular time, not scheduled or part of regular reporting.

Configure-to-order

A manufacturing process where products are assembled and configured according to the specific requirements of the customer after the order is received.

Procurement

The process of acquiring goods, services, or works from an external source, often involving tendering or bidding.