Based on the Data in the Above Table, Then If

question 91

Multiple Choice

Based on the data in the above table, then if opportunity costs are constant, the opportunity cost of producing one cuckoo clock in the United States is ________, and the opportunity cost of producing one cuckoo clock in Switzerland is ________.

• A) 3 movies; 1.33 cuckoo clocks
• B) 0.33 movies; 0.67 cuckoo clocks
• C) 0.67 movie; 1.5 movies
• D) 1.5 movies; 0.67 movie

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Definitions:

Sub-Contracting

The process of outsourcing specific portions of a project or job to specialized third parties while retaining overall responsibility for completion.

Discount Rate

Employed in discounted cash flow analysis, this interest rate is used for determining the current value of cash flows that will be received in the future.

Annual Payments

Regular payments made once a year, often associated with loan repayments or insurance premiums.

Discount Rate

This is the discount rate used in the process of DCF to calculate the present value of cash flows that are to be received in the future.