Table 3-33 Chris and Tony's Production Opportunities

question 324

Multiple Choice

Table 3-33
Chris and Tony's Production Opportunities
-Refer to Table 3-33 Chris and Tony both produce tomatoes and pasta sauce. The table shows their possible production per month if both work the same number of 8 hour days. Given this information, Chris's opportunity cost of 1 lb. of tomatoes is

• A)2 jars of sauce and Tony's opportunity cost of 1 lb. of tomatoes is 3 jars of sauce.
• B)3 jars of sauce and Tony's opportunity cost of 1 lb. of tomatoes is 2 jars of sauce.
• C)20 jars of sauce and Tony's opportunity cost of 1 lb. of tomatoes is 30 jars of sauce.
• D)30 jars of sauce and Tony's opportunity cost of 1 lb. of tomatoes is 20 jars of sauce.

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Definitions:

Annual Dividends

Payments made by a corporation to its shareholder members from its profits or reserves on a yearly basis.

Special Dividend

A one-time payment made by a company to its shareholders, usually in the form of cash, stocks or property, outside the regular dividend payments.

Required Return

The minimum return an investor expects to achieve by investing in a particular asset, taking into account the asset's risk.

Dividend Growth

The rate at which a company's dividend payments to shareholders increase over time, indicating the company's growth and stability.