On a Production Possibilities Frontier Showing Possible Output Levels of Good

question 131

Multiple Choice

On a production possibilities frontier showing possible output levels of good A and good B, the opportunity cost of producing the first 10 units of A will usually be

• A)the same as the opportunity cost of producing the second 10 units of A
• B)less than the opportunity cost of producing the second 10 units of A
• C)greater than the opportunity cost of making the second 10 units of A
• D)10 units of A
• E)10 units of B

---

Definitions:

Products And Services

The combination of physical goods and intangible services that are offered by a business to satisfy the needs and wants of consumers.

Flexible Production

A manufacturing approach that allows for quick adjustments to production processes and product types to meet changing market demands.

Inventory Adjustments

Adjustments made to the book value of inventory to reflect actual stock levels, often due to loss, theft, spoilage, or errors in counting.

Information Flowing

The movement of information or data from one point or part of a system to another, facilitating communication and decision-making processes.