Narrbegin Exhibit 18 -In Exhibit 18

question 20

Multiple Choice

Narrbegin Exhibit 18.3 Potatoes and wheat output (tonnes per day)
$$\begin{array} { | l | c | c | } \hline \text { Cuuntry } & \text { Putatoes } & \text { Wheat } \\\hline \text { Australia } & 4 & 2 \\\hline \text { Ireland } & 3 & 1 \\\hline\end{array}$$
-In Exhibit 18.3, Australia has an absolute advantage in producing:

• A) potatoes.
• B) wheat.
• C) both potatoes and wheat.
• D) neither potatoes nor wheat.

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Definitions:

Substitute Products

Goods or services that can be used in place of each other, demonstrating a positive cross-elasticity of demand.

Oligopolistic Firms

Companies that are part of an oligopoly, a market structure with a small number of large firms dominating the industry, often leading to strategic behavior.

High Profits

Increased financial gains resulting from operating activities, typically seen as significantly above the average or expected level.

Market Structure Types

Various classifications of market systems based on the number of firms in the market, the nature of the product, and the degree of competition, including perfect competition, monopoly, oligopoly, and monopolistic competition.