Use the Table Below to Answer the Following Questions

question 117

Multiple Choice

Use the table below to answer the following questions.
Table 2.1.2
Production Possibilities
-Refer to Table 2.1.2.According to this production possibilities frontier,

• A)a combination of 6 kilograms of butter and 1 snowshoe is inefficient.
• B)a combination of 0 kilograms of butter and 4 snowshoes is attainable.
• C)resources are equally useful in all activities.
• D)the opportunity cost of producing snowshoes increases as more snowshoes are produced.
• E)the opportunity cost of producing snowshoes decreases as more snowshoes are produced.

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Definitions:

Profit

The financial gain realized when the amount of revenue gained exceeds the expenses, costs, and taxes involved in sustaining the activity in question.

Long Run Equilibrium

A state in an economy in which all factors of production and inputs can be varied, allowing firms to make adjustments and leading to the normalization of prices and output.

Industry's Adjustment

The process by which industries adapt to changes in economic conditions, technology, or market demands.

Average Total Cost

The total cost of production divided by the number of units produced, representing the average cost per unit.