Suppose That a Worker in Country a Can Make Either

question 7

Multiple Choice

Suppose that a worker in Country A can make either 25 bananas or 5 tomatoes each year.Country A has 200 workers.Suppose a worker in Country B can make either 18 bananas or 6 tomatoes each year.Country B has 400 workers.Suppose Country A specializes in bananas,and Country B specializes in tomatoes.The limits to the terms of trade that Country A would find acceptable are Country A will give no:

• A) more than 5 bananas for each tomato.
• B) less than 5 bananas for each tomato.
• C) more than 1 tomato for every 5 bananas.
• D) less than 1 tomato for every 5 bananas.

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Definitions:

Chase Strategy

A planning strategy used in production management where production rates are adjusted in response to changes in demand, aiming to match supply with demand as closely as possible.

Production Rate

The speed at which goods are manufactured within a specified time period.

Demand Rate

The rate at which goods or services are required or consumed by the market or a specific customer over a given time period.

Linear Programming

A mathematical method for determining a way to achieve the best outcome, such as maximum profit or lowest cost, in a given mathematical model for some list of requirements represented as linear relationships.