Table 212 Table 2

question 112

Multiple Choice

Table 2.12 Table 2.12 shows the number of labour hours required to produce a cell phone and a cubic metre of lumber in Estonia and Finland.
-Refer to Table 2.12.If the two countries specialize and trade, who should export cell phones?

• A)There is no basis for trade between the two countries.
• B)Estonia
• C)Finland
• D)They should both be importing cell phones.

---

Definitions:

Marginal Cost

The cost of producing one additional unit of a product or service.

Average Variable Cost

Average Variable Cost is the variable cost per unit of output, calculated by dividing total variable costs by total output, illustrating how variable costs change with output levels.

Output

The total amount of goods or services produced by a person, machine, factory, country, etc., within a particular time period.

Marginal Product

The additional output generated by employing one more unit of a factor of production.