Table 2-14 Table 2-14 Shows the Number of Labor Hours

question 342

Multiple Choice

Table 2-14
Table 2-14 shows the number of labor hours required to produce a motorcycle and a guitar in Ireland and Scotland.
-Refer to Table 2-14. What is Ireland's opportunity cost of producing one motorcycle?

• A) 0.2 guitar
• B) 5 guitars
• C) 8 guitars
• D) 32 guitars

---

Definitions:

Industrial Regulation

Governmental policies and laws aimed at controlling or guiding business practices in specific sectors to ensure fair practices, safety, and competition.

Decreasing Average Total Costs

A situation in which the average total cost of production decreases as the output increases, indicative of economies of scale.

Natural Monopoly

A market condition where a single supplier is most efficient in producing the good due to the high fixed or start-up costs associated with the industry.