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Prairie, Inc. produces a single product. It has an annual capacity of 10,000 units, but currently uses only 80

1) 30
2) 42
3) 35
4) 45

User Gabi Davar
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1 Answer

5 votes

Final answer:

The question appears to address production capacity, use of technologies, and opportunity costs in the context of specialization and trade. It may be focused on the allocation of resources for optimizing productivity and the benefits of engaging in trade based on comparative advantage.

Step-by-step explanation:

The student's question seems to be incomplete as it states Prairie, Inc. produces a single product with an annual capacity of 10,000 units and currently uses only 80% of that capacity. Various production technologies are mentioned like 'Production technology 1' utilizing 10 workers and 2 machines, and 'Production technology 2' using 7 workers. The mention of 8,000 shoes and 10,000 refrigerators along with a table reference suggests this question deals with production possibilities and opportunity costs in the context of specialization and trade.

For instance, the reference to the United States and Mexico each having 40 workers and their production capacities indicates that we are examining how resources can be allocated for optimal productivity, and the impact of trade on production possibilities. The use of 'Table 33.8 Production Possibilities before Trade with Complete Specialization' implies the concept of countries or entities focusing on the production of goods for which they have a comparative advantage, which in turn increases overall efficiency and output when trade is conducted.

User Manasi Sakhare
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