Table 19-12
Output Per Hour Production and Production
of Work

question 32

Multiple Choice

Table 19-12
Output per hour Production and Production
of work Consumption without Trade with Trade
$\begin{array}{|c|c|c|c|c|c|c|}\hline & \text { Swords } & \text { Belts } & \text { Swords } & \text { Belts } & \text { Swords } & \text { Belts } \\\hline \text { Estonia } & 5 & 3 & 100 & 40 & 200 & 0 \\\hline \text { Morocco } & 2 & 2 & 60 & 60 & 0 & 120 \\\hline\end{array}$ Estonia and Morocco can produce both swords and belts. Each country has a total of 40 available labor hours for the production of swords and belts. Table 19-12 shows the output per hour of work, the production and consumption quantities without trade, and the production numbers with trade.
-Refer to Table 19-12.What is the opportunity cost to produce 1 belt in Morocco?

• A) 1/2 of a sword
• B) 1 sword
• C) 1.5 swords
• D) 2 swords

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Definitions:

Monopoly Power

The ability of a monopolistic firm to control market price and exclude competitors, often leading to higher prices and less consumer choice.

Monopolist

An individual or entity that is the sole provider of a particular good or service, thereby controlling the market.

Regulated

Regulated refers to industries or activities that are controlled or supervised by government laws and standards to ensure fairness, safety, and efficiency.

Minimum Feasible Price

The lowest price at which a product or service can be sold, covering all necessary costs of production without incurring a loss.