Table 3-3 -Refer to Table 3-3

question 136

Multiple Choice

Table 3-3
$\begin{array}{|l|c|c|c|c|}\hline&\text { Hours needed to make one unit of: }&&\text { Amount produced in } 2400 \text { hours: }\\\hline & \text { Cars } & \text { Aeroplanes } & \text { Cars } & \text { Aeroplanes } \\\hline \text { US } & 40 & 160 & 60 & 15 \\\hline \text { Europe } & 50 & 150 & 48 & 16 \\\hline\end{array}$
-Refer to Table 3-3.The opportunity cost of one car for the US is:

• A)four aeroplanes
• B)three aeroplanes
• C)1/3 aeroplane
• D)1/4 aeroplane

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Definitions:

Oligopoly

A market structure characterized by a small number of firms whose decisions about production and pricing significantly affect each other.

Perfect Competition

A market structure characterized by a large number of small firms, identical products, and no barriers to entry or exit, leading to price determination by market forces.

Market Power

The ability of a firm or group of firms to influence the price of a product or the conditions of the market.

Inefficiency

The lack of economic efficiency, occurring when resources are not utilized optimally according to certain criteria.