Table 3-7 Assume That Japan and Korea Can Switch Between Producing Cars

question 377

Multiple Choice

Table 3-7
Assume that Japan and Korea can switch between producing cars and producing airplanes at a constant rate.

-Refer to Table 3-7.Assume that Japan and Korea each has 2400 hours available.If each country divides its time equally between the production of cars and airplanes,then total production is

• A) 40 cars and 8 airplanes.
• B) 64 cars and 16 airplanes.
• C) 80 cars and 16 airplanes.
• D) 128 cars and 32 airplanes.

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Definitions:

Economic Efficiency

A state in which resources are optimally allocated to serve each person in the best way while minimizing waste and inefficiency.

Entry Barriers

Obstacles that make it difficult for new competitors to enter a market, including high startup costs, stringent regulations, and established brand loyalty.

Brand Loyalty

A customer's consistent preference for one brand over all others, often reflected in repeated purchases.

Economies of Scale

The financial benefits that businesses gain from their operation size, where the cost for each unit produced typically diminishes as the scale of operation grows.