Popeye Produces 20 Cans of Spinach in 8 Hours

question 92

Multiple Choice

Popeye produces 20 cans of spinach in 8 hours.Wimpy produces 15 hamburgers in 10 hours.If each hamburger trades for 1.5 cans of spinach,then

• A)Popeye's production and productivity are greater than Wimpy's.
• B)Popeye's production is greater than Wimpy's,but his productivity is less.
• C)Wimpy's production and productivity are greater than Popeye's.
• D)Wimpy's production is greater than Popeye's,but his productivity is less.

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Definitions:

Cost-output Elasticity

A measure of the responsiveness of the cost of production to a change in the level of output, indicating how costs change as production scales.

Economies of Scale

Refers to the cost advantage that arises with increased output of a product, where fixed costs are spread out over more units of output.

Economies of Scope

Cost advantages that enterprises obtain due to a broader scope of operations, often through producing a variety of products rather than specializing in just one.

Marginal Products

The extra output obtained by utilizing an additional unit of a specific input while keeping all other inputs unchanged.