The Table Given Below Represents the Output Per Hour of Cookies

question 61

Multiple Choice

The table given below represents the output per hour of cookies and chilies in Ohio and Iowa.Table 2.4

-The difference between what can be produced and consumed without specialization and trade and with specialization and trade is called:

• A)comparative advantage.
• B)a tradeoff.
• C)marginal cost.
• D)opportunity cost.
• E)gains from trade.

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Definitions:

Variable Costs

Expenses that change in proportion to the activity of a business, such as costs for raw materials or production.

Shut Down

The process of ceasing operations, typically referring to temporarily or permanently closing a business or facility.

Marginal Costs

The extra costs incurred from increasing production output by a single unit, essential for determining optimal production levels.

Fixed Costs

Costs that do not vary with the volume of production or sales, such as rent, salaries, and insurance.