-Use the Above Table

question 197

Multiple Choice

-Use the above table. Assuming constant opportunity costs, the opportunity cost of producing coffee in country Alpha is ________, and the opportunity cost of producing coffee in country Beta is ________.

• A)0.33 ton of cookies; 2 tons of cookies
• B)3 tons of cookies; 0.5 ton of cookies
• C)0.375 ton of coffee; 2.25 tons of cookies
• D)2.67 tons of cookies; 0.44 ton of coffee

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Definitions:

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Binary Variable

A variable that has only two possible values, often represented as 0 and 1, used to denote presence or absence, success or failure, and similar dichotomies.

Optimal Solution

The most efficient, effective, or desirable solution to a problem or the best decision given the constraints.

Total Cash

The overall amount of liquid assets available to an individual or organization.