Table 3-23 Assume That the Farmer and the Rancher Can Switch Between

question 71

Multiple Choice

Table 3-23
Assume that the farmer and the rancher can switch between producing pork and producing tomatoes at a constant rate.
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-Refer to Table 3-23. Without trade, the farmer produced and consumed 2 pounds of pork and 4 pounds of tomatoes and the rancher produced and consumed 4 pounds of pork and 2 pounds of tomatoes. Then, each person agreed to specialize in the production of the good in which he has a comparative advantage and trade 4 pounds of pork for 6 pounds of tomatoes. As a result,

• A)the farmer gained 3 hours worth of production and the rancher gained 4 hours worth of production.
• B)the farmer gained 4 hours worth of production and the rancher gained 6 hours worth of production.
• C)the farmer gained 6 hours worth of production and the rancher gained 8 hours worth of production.
• D)the farmer gained 8 hours worth of production and the rancher gained 10 hours worth of production.

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Definitions:

Antitrust Cases

Legal actions taken to address or prevent business practices that reduce competition in the marketplace.

Sherman Act

A landmark federal statute in the U.S. antitrust law prohibiting monopolistic practices and promoting competition.

Restrain Trade

Involves activities or agreements that restrict or limit competition within a market, often considered illegal under antitrust laws.

Antitrust Violations

Illegal activities under antitrust laws that lead to unfair competition, such as price fixing, monopolies, and other practices that significantly reduce market competition.