The Graphs Above Show the Production Possibilities Curves for the U.S.and

question 19

Multiple Choice

The graphs above show the production possibilities curves for the U.S.and Canada,which both produce cars and wheat.
Based on the graphs above,which of the following is true?

• A)The opportunity cost of a car in the U.S. is 1 unit of wheat.
• B)The opportunity cost of a car in the U.S. is 5 units of wheat.
• C)The opportunity cost of a car in Canada is 1/2 unit of wheat.
• D)The opportunity cost of a car in Canada is 2 units of wheat.

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Definitions:

Multidomestic Strategy

A business strategy that involves a company adapting its products and practices to each local market, while maintaining a global presence.

Local Employment Customs

The traditional practices, norms, and laws that govern hiring, working conditions, and worker relations in a particular geographic area or culture.

Location Economies

The cost advantage of performing each stage in the value chain at the lowest cost for that activity.

Multidomestic Strategy

A corporate strategy that involves a firm offering products or services that are tailored to suit the tastes and preferences of different local markets.