Answer the Question on the Basis of the Accompanying Production

question 59

Multiple Choice

Answer the question on the basis of the accompanying production possibilities tables for two countries, Latalia and Trombonia. In Latalia the domestic real cost of 1 ton of pork

• A)is 3 tons of beans.
• B)diminishes with the level of pork production.
• C)is 5 tons of beans.
• D)is 1/5 of a ton of beans.

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Definitions:

Net Profit

The financial gain or loss a business makes after subtracting all expenses, taxes, and costs from total revenue.

Shadow Price

In linear programming, it refers to the value that represents the change in the optimal objective function value per unit increase in the right-hand side of a constraint.

Finishing Constraint

A limitation or requirement in the production process that must be met before a product can be completed and delivered.

Total Profit

Total profit is the total income of a business after subtracting all expenses.