-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:

Operating Income

Income from a company's main business activities, excluding deductions for interest and taxes, showing the profitability from core operations.

ROE

Return On Equity, a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how efficiently a company uses investments to generate earnings growth.

EPS

Earnings per share, a company's net profit divided by the number of its outstanding shares, indicating profitability.

EBIT

Earnings before interest and taxes, a measure of a company's profitability that excludes expense and income from interest and taxes.