If Japan Must Give Up the Production of 75 Computers

question 228

Multiple Choice

If Japan must give up the production of 75 computers to produce 25 additional cellular telephones,the opportunity cost of producing 4 cellular telephones is _____ computers.

• A)4
• B)12
• C)71
• D)79

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Definitions:

Long-Run Profit

The sustained earning capacity of a company over an extended period, considering both fixed and variable costs.

Non-Value-Added Activity

Processes or tasks that consume resources but do not add value or enhance the product or service from the customer's perspective.

Partly Finished Production

Items or goods that have undergone some stages of the production process but are not yet complete.

Life Cycle Costing

An approach to assessing the total cost of ownership, factoring in all costs of acquiring, owning, and disposing of a system or product.