Use the Following to Answer Question

question 121

Multiple Choice

Use the following to answer question:

-(Figure: Bicycles and Radishes I) Use Figure: Bicycles and Radishes I.The figure shows the production possibility frontiers for two countries that produce only radishes and bicycles.The axes of the two graphs are measured in equivalent units.Country A is operating at point M,and country B is operating at point N.The opportunity cost of producing an additional ton of radishes would be greater in:

• A)country A.
• B)country B.
• C)neither;the opportunity cost would be the same in both countries.
• D)There is not enough information to answer the question.

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Definitions:

FIFO Method

First-In, First-Out, an inventory valuation method where the oldest inventory items are sold or used first.