Table 3-7 Assume That Japan and Korea Can Switch Between Producing Cars

question 340

Multiple Choice

Table 3-7
Assume that Japan and Korea can switch between producing cars and producing airplanes at a constant rate.

-Refer to Table 3-7.Japan's opportunity cost of one airplane is

• A) 1/5 car and Korea's opportunity cost of one airplane is 1/3 car.
• B) 1/5 car and Korea's opportunity cost of one airplane is 3 cars.
• C) 5 cars and Korea's opportunity cost of one airplane is 1/3 car.
• D) 5 cars and Korea's opportunity cost of one airplane is 3 cars.

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Definitions:

Perfectly Positively Correlated

A statistical term describing two variables that move in the same direction with a correlation coefficient of +1, indicating a perfect positive linear relationship.

Cycle Inventory

Inventory that a company holds to meet its normal sales operations, varying over the course of an operating cycle or period.

Forecasted Demand

An estimate of the quantity of a product or service that consumers will purchase in the foreseeable future.

Periodic Review

An evaluation process conducted at regular intervals to assess performance, inventory levels, or other critical factors in operations and management.