Table 2-11 Table 2-11 Shows the Number of Labor Hours

question 172

Multiple Choice

Table 2-11
Table 2-11 shows the number of labor hours required to produce a digital camera and a pound of wheat in China and South Korea.
-Refer to Table 2-11. What is China's opportunity cost of producing one digital camera?

• A) 0.04 pounds of wheat
• B) 4 pounds of wheat
• C) 25 pounds of wheat
• D) 40 pounds of wheat

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Definitions:

Acquiring Company

A company that purchases most or all of another company's shares to gain control of it.

Target Company

The object of a corporate acquisition or merger.

Conglomerate Merger

A merger between companies in unrelated businesses.

Vertical Merger

A merger between companies when one is a supplier or a customer of the other.