Table 3-4 Assume That the Farmer and the Rancher Can Switch Between

question 85

Multiple Choice

Table 3-4
Assume that the farmer and the rancher can switch between producing meat and producing potatoes at a constant rate.

-Refer to Table 3-4.Without trade,the farmer produced and consumed 3 pounds of meat and 5 pounds of potatoes and the rancher produced and consumed 4 pounds of meat and 3 pounds of potatoes.Then,each person agreed to specialize in the production of the good in which they have a comparative advantage and trade 4 pounds of meat for 8 pounds of potatoes.As a result,the farmer gained

• A) 1 pound of meat and 3 pounds of potatoes and the rancher gained 0 pounds of meat and 5 pounds of potatoes.
• B) 1 pound of meat and 7 pounds of potatoes and the rancher gained 2 pounds of meat and 5 pounds of potatoes.
• C) 4 pounds of meat and 8 pounds of potatoes and the rancher gained 4 pounds of meat and 8 pounds of potatoes.
• D) 4 pounds of meat and 12 pounds of potatoes and the rancher gained 6 pounds of meat and 8 pounds of potatoes.

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Definitions:

Toyota Production System

A highly efficient and flexible production system developed by Toyota that focuses on eliminating waste and increasing quality.

TPS

Toyota Production System, a highly influential production philosophy focused on eliminating waste, improving productivity, and achieving efficiency in manufacturing.

Kanban Size

Refers to the capacity or limit set for a kanban, a tool in lean manufacturing and just-in-time production, which signals when more materials or work is needed.

Setup Cost

A fixed cost incurred each time a production process or activity is initiated, which includes costs associated with preparing equipment and facilities for manufacturing.