Scenario: Consider Two Economies, Beta and Zeta

question 158

Multiple Choice

Scenario: Consider two economies, Beta and Zeta. Each farmer in Beta can grow 1,000 pounds of apples or 500 pounds of oranges in a year. Each farmer in Zeta can grow 400 pounds of apples or 1,200 pounds of oranges in a year.
-Refer to the scenario above.The opportunity cost of producing 1 pound of oranges in Beta is ________.

• A) 5 pounds of apples
• B) 2 pounds of apples
• C) 1 pound of apples
• D) 0.5 pounds of apples

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Definitions:

Differentiation Strategy

A business approach where a company develops unique products or services to stand out from competitors.

Unique Product

A product that is distinct in its features, functionality, or branding, setting it apart from competitors' offerings.

Cost Leadership Strategy

A business strategy focused on gaining competitive advantage by being the lowest cost producer in the market while maintaining acceptable quality levels.

Low Prices

A pricing strategy where goods or services are offered to consumers at a lower cost compared to competitors.