Table 3-2 Assume That Aruba and Iceland Can Switch Between Producing Coolers

question 68

Multiple Choice

Table 3-2
Assume that Aruba and Iceland can switch between producing coolers and producing radios at a constant rate.

-Refer to Table 3-2.Aruba's opportunity cost of one cooler is

• A) 0.4 radio and Iceland's opportunity cost of one cooler is 0.25 radio.
• B) 0.4 radio and Iceland's opportunity cost of one cooler is 4 radios.
• C) 2.5 radios and Iceland's opportunity cost of one cooler is 0.25 radio.
• D) 2.5 radios and Iceland's opportunity cost of one cooler is 4 radios.

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Definitions:

Cost of Lost Sales

The financial impact experienced by a business when potential sales are not realized due to stockouts or inability to meet demand.

Form Utility

The value added to goods through a manufacturing process that changes the form of the product to make it more desirable to consumers.

Logistics Activity

The range of operations involved in the management of the flow of goods from the point of origin to the point of consumption to meet customer requirements.

Components

Parts or elements that make up a larger product or system.