Answer the Question on the Basis of the Following Production

question 100

Multiple Choice

Answer the question on the basis of the following production possibilities table for two countries, North Cantina and South Cantina. Refer to the table. If South Cantina is producing at production alternative C, the opportunity cost of the fourth unit of capital goods will be

• A)1/7 of a unit of consumer goods.
• B)3 units of consumer goods.
• C)19 units of consumer goods.
• D)7 units of consumer goods.

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Definitions:

Oligopolistic Industries

Sectors characterized by a small number of large firms that have significant control over market prices and competition.

Differentiated Products

Goods or services that are distinguished from similar products by characteristics like quality, design, and features.

Standardized Products

Goods that are made to specific standards to ensure consistency and uniformity, facilitating mass production and interchangeability across different brands or producers.

Homogeneous Oligopolists

A market structure where a few firms offer products or services that are similar in nature and hence are close substitutes for each other.