(Figure: PPF) in the Figure, with Specialization and Terms of Trade

question 19

Multiple Choice

(Figure: PPF) In the figure, with specialization and terms of trade of 3 shoes for 2 cars, Canada can consume _____ shoe(s) and _____ car(s) .

• A) 1; 2
• B) 2; 2
• C) 3; 1
• D) 4; 1

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Definitions:

Managing Demand

The process of strategically moderating and directing consumer demand through various techniques to match available capacity.

Service Firms

Companies that provide intangible products or services to consumers or other businesses.

Capacity Decisions

Capacity decisions are strategic choices made by businesses regarding the amount of production resources available to meet demand, including facilities, equipment, and labor force.

Maximize Profit

The process of making business decisions that increase the difference between total revenue and total costs to the highest possible level.