Country a Can Produce 10 Yards of Textiles or 6

question 18

Multiple Choice

Country A can produce 10 yards of textiles or 6 pounds of food per unit of input.Country B can produce 8 yards of textiles or 5 pounds of food per unit of input.Which of the following statements is true?

• A)Country A is relatively more efficient than Country B in the production of food.
• B)Country B is relatively more efficient than Country A in the production of textiles.
• C)Country A is relatively more efficient than Country B in the production of textiles.
• D)none of the options

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Definitions:

Oligopoly

A market structure characterized by a small number of firms which dominate the market, leading to limited competition and potentially higher prices for consumers.

Price Leadership

A form of oligopoly in which one dominant firm sets prices and all the smaller firms in the industry follow its pricing policy.

OPEC Cartel

An organization of oil-producing countries that coordinates and unifies petroleum policies to secure fair and stable prices for petroleum producers.

Predatory Pricing

A competitive strategy where a firm sets very low prices with the intention of driving competitors out of the market, or to prevent new entries.