Figure 3-3 -Refer to Figure 3-3.Arturo and Dina Would Not Be Able

question 300

Multiple Choice

Figure 3-3

-Refer to Figure 3-3.Arturo and Dina would not be able to gain from trade if Dina's opportunity cost of one taco changed to

• A) 1/2 burrito.
• B) 3/4 burrito.
• C) 4/3 burritos.
• D) 2 burritos.

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Definitions:

Total Fixed Costs

Expenses that do not change in proportion to the activity of a business, such as rent, salaries, or insurance premiums.

Silk Flower Arrangements

Artificial flower displays made from silk and other materials, designed to replicate the appearance of natural flowers.

Fixed Cost

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

Variable Cost

Costs that change in proportion to the level of production or sales, such as materials and labor directly involved in manufacturing.