The Accompanying Table Gives Maximum-Output Alternatives for Brazil and Poland

question 162

Multiple Choice

$$\begin{array} { | l | c | c | } \hline & \text { Wine } & \text { Machines } \\\hline \text { Brazil } & 30 & 10 \\\hline \text { Poland } & 10 & 10 \\\hline\end{array}$$ The accompanying table gives maximum-output alternatives for Brazil and Poland. It can be seen that if the two nations open up trade with each other, then

• A) Brazil will specialize in producing machines and import wine.
• B) Poland will specialize in producing machines and import wine.
• C) Poland will export wine.
• D) Brazil will not gain from specializing and trading, but Poland will gain.

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Definitions:

Fixed Costs

Financial obligations like rent, salaries, and insurance premiums that do not fluctuate with changes in production or sales levels.

Sales Data

Information and statistics related to the sale of goods and services, used by businesses to analyze performance, forecast trends, and make strategic decisions.

Composite Unit

A measurement representing a combination of different but related items, often used in production or inventory management to simplify tracking and analysis.

Break-Even Point

The level of production or sales at which total revenues equal total expenses, resulting in neither a profit nor a loss.