Answer the Question on the Basis of the Following Production

question 115

Multiple Choice

Answer the question on the basis of the following production possibilities tables for two countries,Latalia and Trombonia: $\begin{array}{c}\quad\quad\quad\underline{\text {Latalia's Production Possibilities}}\\\begin{array}{lll}\\ \text {Pork (Tons) }\\ \text {Beans (Tons) }\end{array}\begin{array}{c}\underline{\text {A}}\\4\\0\end{array}\begin{array}{c}\underline{\text {B}}\\3\\5\end{array}\begin{array}{c}\underline{\text {C}}\\2\\10\end{array}\begin{array}{c}\underline{\text {D}}\\1\\15\end{array}\begin{array}{c}\underline{\text {E}}\\0\\25\end{array}\end{array}$
$\begin{array}{c}\quad\quad\quad\underline{\text {Trombonia's Production Possibilities }}\\\begin{array}{lll}\\ \text {Pork (Tons) }\\ \text {Beans (Tons) }\end{array}\begin{array}{c}\underline{\text {A}}\\8\\0\end{array}\begin{array}{c}\underline{\text {B}}\\6\\6\end{array}\begin{array}{c}\underline{\text {C}}\\4\\12\end{array}\begin{array}{c}\underline{\text {D}}\\2\\18\end{array}\begin{array}{c}\underline{\text {E}}\\0\\24\end{array}\end{array}$
The given data indicate that production in:

• A) both Latalia and Trombonia is subject to constant opportunity costs.
• B) Trombonia is subject to decreasing costs,but production in Latalia occurs under increasing opportunity costs.
• C) Latalia is subject to increasing costs,but production in Trombonia occurs under constant opportunity costs.
• D) both Latalia and Trombonia are subject to the law of increasing opportunity costs.

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Definitions:

Save a Life

Save a Life refers to actions or interventions taken to prevent someone from dying.

Marginal Cost Curve

A graphical representation showing how the cost of producing one more unit of a good changes as production volume varies.

Upward Sloping

A line on a graph that shows an increase in a certain variable as another variable increases.

Sunk Costs

Costs that have already been incurred and cannot be recovered, and therefore, should not be considered in making future economic decisions.