Scenario: Mark Can Make Three Tables and One Chair in a Day

question 184

Multiple Choice

Scenario: Mark can make three tables and one chair in a day, while John can make four tables and one chair in a day.
-Refer to the scenario above.Which of the following is true in this case?

• A) John should specialize in making tables, because he has a lower opportunity cost of producing them.
• B) John should specialize in making chairs, because he has a lower opportunity cost of producing them.
• C) John should specialize in making tables, because he has a greater opportunity cost of producing them.
• D) John should specialize in making chairs, because he has a greater opportunity cost of producing them.

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Definitions:

Narrowcast

A broadcasting strategy targeting a specific or niche audience, as opposed to broadcasting to a wider, general audience.

Micro-market

A small, specific market segment characterized by particular consumer preferences and demands.

Scarcity

A situation in which resources or goods are limited in availability, leading to increased value and demand.

Psychological Principle

Fundamental concepts or assumptions in psychology that explain behaviors, thoughts, and emotions.