Table 3-27 Assume That Huang and Min Can Switch Between Producing Parasols

question 50

Multiple Choice

Table 3-27
Assume that Huang and Min can switch between producing parasols and producing porcelain plates at a constant rate.
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-Refer to Table 3-27. Assume that Huang and Min each has 36 labor hours available. Originally, each person divided his/her time equally between the production of parasols and plates. Now, each person spends all their time producing the good in which they have a comparative advantage. As a result, the total output of plates increased by

• A)0.
• B)1.5.
• C)3.
• D)9.

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Definitions:

Sunk Costs

Sunk Costs are costs that have already been incurred and cannot be recovered, and should not affect future business decisions.

Additional Costs

Expenses incurred beyond the expected or budgeted amounts, often relating to unexpected events or changes in circumstances.

Nonfinancial Factors

Aspects influencing decision-making in business that are not quantifiable in monetary terms, such as employee satisfaction or environmental impact.

Employee Morale

The overall outlook, attitude, satisfaction, and confidence that employees feel at work, which can significantly impact an organization's success.