Use the Figure Below to Answer the Following Questions

question 39

Multiple Choice

Use the figure below to answer the following questions. Figure 2.1.2
-Refer to the production possibilities frontier in Figure 2.1.2.At point C,the opportunity cost of producing one more unit of X is

• A)1 unit of Y.
• B)1 unit of X.
• C)8 units of X.
• D)20 units of X.
• E)20 units of Y.

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Definitions:

Periodic Inventory System

An inventory system in which ending inventory and cost of goods sold are determined at the end of the accounting period based on a physical inventory count.

Physical Inventory

Physical inventory refers to the process of counting and verifying the physical stock of goods a company holds in its possession.

Net Income

The net income of a business following the deduction of all costs, such as operational expenses and taxes, from its overall revenue.

Ending Inventory

The total value of a company’s inventory at the end of an accounting period, calculated before the new fiscal period begins.