The Data in the Table Below Assumes That with the Same

question 17

Multiple Choice

The data in the table below assumes that with the same quantity of resources, both Australia and Philippines produces food and computers.Australia can make 1, 000 computers or 2, 000 units of food in a day, and the Philippines can make 200 computers or 1, 200 units of food in a day. Table 20.2 According to Table 20.2, Australia has an:

• A)absolute advantage in the production of only food.
• B)absolute advantage in the production of both food and computers.
• C)absolute disadvantage in the production of both food and computers.
• D)absolute advantage in the production of only computers.
• E)absolute disadvantage in the production of food.

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Definitions:

Diseconomies of Scale

An economic concept where an increase in production leads to a rise in average costs per unit due to inefficiencies.

Economies of Scale

Cost advantages that a business can achieve by increasing the scale of production, leading to lower average costs per unit due to spread fixed costs and operational efficiencies.

Cycle Inventory

The portion of inventory that a company rotates in and out of stock as part of its normal business operations, reflecting the frequency of production and ordering cycles.

Objective Lenses

The lenses on a microscope closest to the specimen, responsible for magnifying the image.