A Small Country Produces Only Two Goods,CDs and T-Shirts

question 24

Essay

A small country produces only two goods,CDs and T-shirts.Given its limited resources,this country has the following production possibilities:
(A)Draw the production possibilities curve.
(B)Suppose this country improves its technology for producing CDs,but technology remains the same for the production of T-shirts.What happens to the production possibility curve? How does this change affect the opportunity cost of increasing T-shirt production?

Understand and apply the concept of the Ringelmann effect and social loafing along with strategies to minimize their impacts in group contexts.

Comprehend the benefits and limitations of collaborative efforts in problem-solving and decision-making.

Analyze theories of social facilitation and how they apply to both individual and group performances in various settings.

Understand the distinctions and examples of different task types (additive, compensatory, disjunctive, conjunctive, discretionary) and their implications for group effectiveness.

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Definitions:

Sales Mix

Refers to the combination of different products or services that a company offers, influencing overall sales and profitability.

Unit Contribution Margin

The difference between the selling price per unit and the variable costs per unit, representing how much each unit sold contributes to covering fixed costs and generating profit.

Break-even Sales

Break-even Sales represent the amount of revenue needed to cover all fixed and variable costs, at which point a business does not make a profit or incur a loss.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, determined by the proportion of fixed versus variable costs a company has.