Use the Following Scenario to Answer the Next Four Questions

question 116

Multiple Choice

Use the following scenario to answer the next four questions:
Esther and Albert produce hamburgers and hot dogs. Esther can produce six hamburgers per hour or four hot dogs per hour. Albert can produce three hamburgers per hour or one hot dog per hour.
-Based on the scenario,Albert's opportunity cost of one hamburger is:

• A) 1/3 hot dog.
• B) 1 hot dog.
• C) 6 hot dogs.
• D) 4 hot dogs.
• E) 8 hot dogs.

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Definitions:

Direct Investment

Putting money into a business venture, property, or other investments in a foreign country, aiming for a controlling interest.

Ownership

The state or condition of legally possessing an object, property, or enterprise.

Joint Venture

A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task.

New Market

Refers to an undiscovered or underexploited segment in the marketplace that a company can target to expand its customer base.