The Table Given Below Represents the Output Per Hour of Cookies

question 88

Multiple Choice

The table given below represents the output per hour of cookies and chilies in Ohio and Iowa.
Table 2.4
$\begin{array}{|ccc|}\hline &\text { Output per Hour }\\\text { Iowa } &\text { Cookies } & \text { Chilies } \\\hline \text { Ohid } & 6 & 24 \\\hline \text { Iowa } & 12 & 96\\\hline \end{array}$
-Refer to Table 2.4. If trade were to occur, what would be the least amount Ohio would be willing to accept for 1 cookie?

• A) 8 chilies
• B)\(1 / 4 \text { of a chili }\)
• C) \(1 / 8 \text { of a chili }\)
• D) 4 chilies
• E) 12 chilies

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Definitions:

Short-run Total Cost

The total of all costs, both fixed and variable, that a firm incurs in producing goods or services in the short run.

Average Total Cost

The cost per unit of output, determined by dividing the overall production cost by the quantity produced.

Fixed Cost

A cost that does not change with an increase or decrease in the amount of goods or services produced.

Variable Cost

A cost that changes with the level of output or production.