Table 3-4 Assume That the Farmer and the Rancher Can Switch Between

question 154

Multiple Choice

Table 3-4
Assume that the farmer and the rancher can switch between producing meat and producing potatoes at a constant rate.

-Refer to Table 3-4.The opportunity cost of 1 pound of potatoes for the rancher is

• A) 1/2 pound of meat.
• B) 1/2 hour of labor.
• C) 2 pounds of meat.
• D) 6 hours of labor.

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Definitions:

Cost of Goods Sold

An accounting term representing the direct expenses related to the production of the goods sold by a company, including materials and labor.

Total Revenue

The total income generated from the sale of goods or services before any expenses are subtracted.

Net Receivables

This refers to the total money owed to a company by its customers after allowances for returns, bad debts, and other deductions have been made.

Big Box Retailer

A retail store that occupies a large amount of physical space and offers a variety of products to consumers, often part of a chain.