Refer to the Following Table When Answering -Consider Table 19

question 43

Multiple Choice

Refer to the following table when answering
Table 19.1: East and West Fish and Chip Production
$$\begin{array} { l | l l } & \text { West } & \text { East } \\\hline \text { Labor Force } & 100 & 400 \\\text { Fish Production per Person } & 200 \text { kilos } & 60 \text { kilos } \\\text { Chip Production per Person } & 100 \text { kilos } & 20 \text { kilos } \\\hline\end{array}$$
-Consider Table 19.1. In the East, with autarky, total fish production is ________ and total chip production is ________, assuming people spend half their income on each good.

• A) 30 kilos; 10 kilos
• B) 10,000 kilos; 5,000 kilos
• C) 12,000 kilos; 4,000 kilos
• D) 200 kilos; 200 kilos
• E) Not enough information is given.

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Definitions:

Variable Costs

Expenses that change in proportion to the level of production or sales volume, such as raw materials or direct labor costs.

Profit

The financial gain obtained when the revenues generated from business activities exceed the expenses, costs, and taxes involved in sustaining the activities.

Fixed Costs

Expenses that do not change with the level of goods or services produced by a business, such as rent, salaries, and insurance.

Unit Variable Cost

The cost associated with producing one additional unit of a product, which includes labor, materials, and other variable expenses.