Suppose That Trade Occurs

question 72

Multiple Choice

Suppose that trade occurs. Each country completely specializes and 500 kegs of beer are traded for 500 bottles of whiskey. What is the international price of beer?

• A)1 bottle of whiskey = 1 keg of beer
• B)3 bottles of whiskey = 1 keg of beer
• C)2/3 bottle of whiskey = 1 keg of beer
• D)1 bottle of whiskey = 3 kegs of beer

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Definitions:

Yield Management

A pricing strategy used in industries with fixed capacities to maximize revenue by adjusting prices based on demand.

Operations Management

is the area of management concerned with designing and controlling the process of production and redesigning business operations in the production of goods or services.

Demand Curve

A graph showing the relationship between the price of a good and the amount of the good that consumers are willing to purchase at that price.