The Above Table Shows the Daily Production Possibilities for a Bakery

question 39

Multiple Choice

The above table shows the daily production possibilities for a bakery.
Currently the bakery bakes 60 pizzas and 180 loaves of bread, that is at alternative C.
-Using the above table, what is the opportunity cost of moving from alternative C to alternative D?

• A) 60 loaves of bread
• B) 2 loaves of bread
• C) 30 loaves of bread
• D) 1/2 loaf of bread

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Definitions:

Penetration Pricing

A strategy where businesses set a low price for a new product or service to attract customers and gain market share quickly, intending to raise prices later.