The Tables Give Production Possibilities Data for Two Countries, Alpha $\quad$

question 108

Multiple Choice

The tables give production possibilities data for two countries, Alpha and Beta, which have populations of equal size. $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text { Alpha's production possibilities }$
$\begin{array}{|c|c|c|c|c|c|}\hline & \text { A } & \text { B } & \text { C } & \text { D } & \text { E } \\\hline \text { Fish (Tons) } & 80 & 60 & 40 & 20 & 0 \\\hline \text { Chips (Tons) } & 0 & 5 & 10 & 15 & 20 \\\hline\end{array}$ $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text { Beta's production possibilities }$
$\begin{array}{|c|c|c|c|c|c|} \hline& \mathrm{A} & \mathrm{B} & \mathrm{C} & \mathrm{D} & \mathrm{E} \\\hline \text { Fish (Tons) } & 240 & 180 & 120 & 60 & 0 \\\hline \text { Chips (Tons) } & 0 & 10 & 20 & 30 & 40\\\hline\end{array}$ Suppose that before specialization and trade, Alpha chose production alternative C and Beta chose production alternative B. After specialization and trade, the gains will be

• A) 20 tons of fish.
• B) 20 tons of chips.
• C) 20 tons of fish and 20 tons of chips.
• D) 240 tons of fish and 20 tons of chips.

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Definitions:

Canned Soups

Pre-cooked soups that are packaged in cans for convenience, long shelf life, and ease of preparation.

Maturity Stage

The stage of the product life cycle during which the firm focuses on profitability and maintaining the firm’s market share for as long as possible.

Marketing Costs

The expenses associated with promoting, selling, and delivering products or services, including advertising, market research, and distribution costs.

Market Share

The percentage of total sales in an industry generated by a particular company, indicating its strength in the market.