-Agnes Can Produce Either 1 Unit of X or 1

question 315

Multiple Choice

-Agnes can produce either 1 unit of X or 1 unit of Y in an hour, while Brenda can produce either 2 units of X or 4 units of Y in an hour. There can be gains from exchange

• A) if Agnes specializes in the production of X and Brenda specializes in the production of Y.
• B) if Agnes specializes in the production of Y and Brenda specializes in the production of X.
• C) only if Agnes becomes faster at producing X.
• D) only if Brenda becomes faster at producing X or Y.

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Definitions:

Long-Run Financial Risk

The potential for financial loss or difficulties a company may face over an extended period, often due to changes in market conditions, operational challenges, or shifts in demand.

Price Of Corn

The market value per unit of corn, influenced by factors such as supply, demand, weather conditions, and agricultural policies.

Technological Improvements

Enhancements in technology which boost productivity, efficiency, or create new products and services.

Crop

Cultivated plants or agricultural produce, such as grain, vegetables, or fruit, considered as a group.