Below Is Some Hypothetical Data for the Countries of Canada

question 151

Multiple Choice

Below is some hypothetical data for the countries of Canada and Mexico.(Assume that Canada has 10 million workers per month available and Mexico has 20 million. )
Canada's Production Possibilities
(Output in millions of bushels per month)
Mexico's Production Possibilities
(Output in millions of bushels per month)
Output Before Trade
(Output in millions of bushels per month)

-Refer to the information above to answer this question.Which of the following would be feasible terms of trade between the two countries?

• A)1 bushel of beans = 2 bushels of rye.
• B)1 bushel of beans = 0.4 bushels of rye.
• C)1 bushel of beans = 1.25 bushels of rye.
• D)1 bushel of beans = 4 bushels of rye.

---

Definitions:

Net Profit

The financial gain or loss a business makes after subtracting all expenses, taxes, and costs from total revenue.

Shadow Price

In linear programming, it refers to the value that represents the change in the optimal objective function value per unit increase in the right-hand side of a constraint.

Finishing Constraint

A limitation or requirement in the production process that must be met before a product can be completed and delivered.

Total Profit

Total profit is the total income of a business after subtracting all expenses.