-Huey and Steve Can Grow Potatoes or Tomatoes

question 90

Multiple Choice

-Huey and Steve can grow potatoes or tomatoes.The table above shows the pounds of potatoes and tomatoes Huey and Steve can grow in a week.Based on the table,Huey's opportunity cost of producing one pound of tomatoes is

• A) 1.5 pounds of potatoes.
• B) 0.66 pound of potatoes.
• C) 0, because he has an absolute advantage in it.
• D) 0, because he has a comparative advantage in it.
• E) 1.0 pound of potatoes.

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Definitions:

Investee

The entity in which an investor holds an interest, often evidenced through ownership of securities or equity.

Voting Common Stock

A class of stock that grants the holder the right to vote on corporate matters at shareholders' meetings.

Goodwill

An invisible asset that emerges when purchasing a business for a price that is above the fair valuation of its net identifiable assets.

Net Loss

A financial situation where a company's total expenses exceed its total revenues, resulting in a negative profit.