Quiz 1_Solutions - Cheese Relative Price.5 5/2 2 320 440...

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Finance 30210 Managerial Economics Quiz #1 Name___________________________ 1) Suppose that we have the following information about productivity (in terms of production per hour) for the following countries: Country Cheese (kg/hr) Wine (Liters/hr) France 2 5 Germany 3 6 England 8 4 a) For each country, calculate the opportunity cost of cheese production. Rank the three countries in term of efficiency in cheese production. France: (5/2) units of wine per unit cheese (#3) Germany: 2 units of wine per unit cheese (#2) England: .5 units of wine per unit cheese (#1) b) Suppose that each country has 40 hours per week available for wine and cheese production. Plot the supply curve for cheese.
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