Exhibit 21-3 Potatoes and Wheat Output (Tons Per Day)

question 169

Multiple Choice

Exhibit 21-3 Potatoes and wheat output (tons per day)

-In Exhibit 21-3,the United States has an absolute advantage in producing:

• A) potatoes.
• B) wheat.
• C) both.
• D) neither.

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Definitions:

Erosion

The gradual reduction or depletion of an asset's value, often due to competitive market forces or the introduction of new products.

Product Line

A product line is a group of related products under a single brand offered by a company to fulfill different consumer needs.

Sales Estimate

A projected figure indicating the amount of sales a company expects to achieve in a certain period.

Net Present Value

A method used to evaluate the profitability of an investment, calculating the difference between the present value of cash inflows and outflows.