The Table Below Shows the Bushels of Wheat and the Bottles

question 21

Multiple Choice

The table below shows the bushels of wheat and the bottles of beer that North and South Dakota can produce per day of labor under two different hypothetical situations (Cases I and II) . $$\begin{array} { | l | c | c | c | c | } \hline &{ \text { Case I } } & &{ \text { Case II } } \\\hline & \text { South Dakota } & \text { North Dakota } & \text { South Dakota } & \text { North Dakota } \\\hline \text { Wheat (bushels) } & 4 & 1 & 3 & 1 \\\hline \text { Beer bottles) } & 1 & 2 & 4 & 2 \\\hline\end{array}$$ Which state has a comparative advantage in producing beer in Case I?

• A)South Dakota
• B)North Dakota
• C)Neither state
• D)Both states

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Definitions:

Return On Investment

A performance measure used to evaluate the efficiency or profitability of an investment, calculated by dividing the profit from an investment by the cost of the investment.

Price Per Unit

Price per unit describes the cost of a single unit of product or service, providing a basis for evaluating and comparing the value of similar items.

Full Cost

The comprehensive total of all costs associated with producing a product or delivering a service, including direct, indirect, fixed, and variable costs.

Cost-Plus Pricing

A pricing strategy where the selling price is determined by adding a specific markup to a product's cost price to ensure a profit margin is achieved.