-An Economy Produces at Point a on the PPF Shown

question 374

Multiple Choice

-An economy produces at point a on the PPF shown in the above figure. A drought reduces the amount of wheat produced and the economy produces at point b. The opportunity cost of a unit of wheat

• A) remains the same.
• B) increases.
• C) is impossible to calculate without numbers on the axes.
• D) decreases.

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Definitions:

Low-Cost Strategy

Low-cost strategy is a competitive approach where a company aims to become the lowest cost producer in its industry, offering products or services at a price lower than its competitors to attract cost-sensitive customers.

Differentiation Strategy

A business strategy where a company seeks to distinguish its products or services from competitors, typically through quality, design, or unique features.

Profitable Growth

An increase in revenue that leads to enhanced profitability, reflecting both expansion and efficient operations.

Transnational Strategy

A business strategy that involves operating in various countries around the world, recognizing both global efficiency and local responsiveness.