The Table Below Shows Units of Wheat and Cloth Produced

question 66

Multiple Choice

The table below shows units of wheat and cloth produced by each worker per day in both the countries. Table 20.1 According to Table 20.1, the opportunity cost of producing wheat in India equals:

• A)half a unit of cloth.
• B)one-third of a unit of cloth.
• C)2 units of cloth.
• D)4 units of cloth.
• E)one-fourth of a unit of cloth.

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Definitions:

Monopolistically Competitive

An economic setup in which a variety of businesses market goods that are comparable yet distinct, enabling them to have some market control and differentiate their offerings.

Guaranteed A Profit

An assurance that an investment or business endeavor will yield a positive return or profit.

Long Run

In economics, a period in which all inputs, including capital, can be fully adjusted, allowing firms to change their scale of operation.

Economic Profit

An economic profit occurs when the revenue generated from a business activity exceeds both the explicit and implicit costs associated with that activity.