Table 13 Shows the Hypothetical Trade-Off Between Different Combinations of Brushes

question 34

Multiple Choice

Table 1.3 shows the hypothetical trade-off between different combinations of brushes and combs that might be produced in a year with the limited capacity for Country X, ceteris paribus.Complete the table by calculating the required opportunity costs for brushes and combs.
$\begin{array}{|c|c|c|c|c|c|}\hline & \begin{array}{c}\text { Number } \\\text { of } \\\text { Combination }\end{array} & \begin{array}{c}\text { Opportunity Cost } \\\text { of Brushes in } \\\text { Terms } \\\text { of Combs }\end{array} & \begin{array}{c}\text { Number } \\\text { of Combs }\end{array} & \begin{array}{c}\text { Opportunity Cost } \\\text { of Combs in Terms } \\\text { of Brushes }\end{array} \\\hline \mathrm{J} & 0 & & 4 & \\\hline \mathrm{K} & 10 & & 3 & \\\hline \mathrm{L} & 17 & & 2 & \\\hline \mathrm{M} & 21 & & 1 & \\\hline \mathrm{N} & 23 & & 0 & \\\hline\end{array}$
Table $1.3$
Production Possibilities for Brushes and Combs On the basis of your calculations in Table 1.3, the highest opportunity cost for brushes in terms of combs is

• A) 0.10 comb per brush.
• B) 23 combs per brush.
• C) 0.50 comb per brush.
• D) 0.29 comb per brush.

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Definitions:

Synergy Value

The additional value created from combining two entities, often resulting in increased efficiency or market power.

NPV

Net Present Value (NPV) is a financial metric that calculates the present value of all future cash flows (positive and negative) from an investment, discounted back to the present value.

Stock Financing

The process of raising capital through the sale of shares in a company, providing investors with partial ownership and potential dividends.

Incremental Value

The additional value generated by undertaking a specific action or project, compared to not doing so.