The Following Table Shows That in One Day Poultry Farmers

question 27

Multiple Choice

The following table shows that in one day poultry farmers in Arkansas can produce 3 cartons of eggs, while poultry farmers in Idaho can produce 2 cartons of eggs. It takes Arkansas potato farmers one day to produce 30 tons of potatoes, while Idaho potato farmers produce 10 tons of potatoes in that same time.
Table 20.4

-According to Table 20.4, the limits to the terms of trade in potatoes are 1 ton of potatoes in exchange for:

• A) between 5 and 10 cartons of eggs.
• B) between 1 and 10 cartons of eggs.
• C) between one-tenth and one-fifth of a carton of eggs.
• D) between one-fourth and half a carton of eggs.
• E) between 2 and 10 cartons of eggs.

---

Definitions:

External Financing

Funds raised from outside the company, typically through borrowing or selling equity.

Dividend Payout

Dividend payout refers to the portion of a company's earnings distributed to shareholders as dividends.

Profit Margin

A financial metric used to assess a company's profitability by calculating the percentage of revenue that exceeds the costs of goods sold.

Retained Earnings

The portion of a company's profits not distributed as dividends but reinvested in the business.