Using the Above Table but Now the Bakery Bakes 30

question 154

Multiple Choice

Using the above table but now the bakery bakes 30 pizzas and 240 loaves of bread (alternative B) , moving from alternative B to alternative D, what is the opportunity cost of one pizza pie?

• A) 2.5 loaves of bread
• B) 2 loaves of bread
• C) 0.5 loaf of bread
• D) 150 loaves of bread

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Definitions:

Underselling

The practice of selling goods or services at a lower price than competitors, potentially to gain market share.

Japanese Markets

Financial and product markets in Japan, encompassing stock exchanges, commodity trading, and consumer goods markets unique to the Japanese economy.

Absolute Advantage

The ability of an individual, company, or country to produce a good or service more efficiently than competitors using the same amount of resources.

Comparative Advantage

The ability of an individual, company, or country to produce a good or service at a lower opportunity cost than competitors.