Table 9-12 Output Per Hour Production and Production

question 105

Multiple Choice

Table 9-12
Output per hour Production and Production
of work Consumption without Trade with Trade
Estonia and Morocco can produce both swords and belts. Each country has a total of 40 available labor hours for the production of swords and belts. Table 9-12 shows the output per hour of work, the production and consumption quantities without trade, and the production numbers with trade.
-Refer to Table 9-12. With trade, what is the total gain in sword production?

• A) 40
• B) 60
• C) 100
• D) 200

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Definitions:

Cash Acquisition

A method of purchasing a company or asset where the buyer uses cash as the form of payment rather than stocks or other forms of payment.

Equity-Financed

Refers to the way of raising funds for business activities by selling ownership stakes in the company, rather than borrowing money.

Post-Merger

The period following the completion of a merger or acquisition, during which integration and restructuring processes occur.

Purchase Accounting Method

An accounting method used in mergers and acquisitions to allocate the purchase price to the acquired assets and liabilities.