-According to the Above Table, Which Assumes That Opportunity Costs

question 137

Multiple Choice

-According to the above table, which assumes that opportunity costs of producing goods X and Y are constant, which of the following statements is TRUE?

• A) Chen will be willing to produce only good X and trade units of that good to Holly as long as he receives more than 0.5 units of good Y from her in exchange.
• B) Holly will be willing to produce only good X and trade units of that good to Chen as long as she receives less than 2.5 units of good Y in exchange.
• C) Chen will be willing to produce only good Y and trade units of that good to Holly as long has he receives less than 2 units of good X from her in exchange.
• D) Holly will be willing to produce only good Y and trade units of that good to Chen as long as she receives less than 0.4 unit of good X in exchange.

---

Definitions:

Distribution

The process of making a product or service available for the consumer or business user who needs it.

Marketing Mix

The set of controllable marketing variables that a company uses to pursue its desired level of sales in the target market, traditionally defined as product, price, place, and promotion.

Pure Competition

A market structure characterized by a large number of sellers offering identical products or services, ensuring no single entity has market control.

Breach of Contract

The violation of any of the agreed-upon terms and conditions of a binding contract without lawful excuse.