In One Hour,Juan Can Produce 8 Chairs or 2 Tables

question 66

Multiple Choice

In one hour,Juan can produce 8 chairs or 2 tables.If chairs are on the vertical axis,the slope of his production possibilities curve is

• A) 0.25.
• B) - 0.25.
• C) 4.
• D) - 4.
• E) - 2.

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Definitions:

Theoretical Capacity

The highest level of activity that an entity can achieve under perfect operating conditions, ignoring any limitations such as maintenance or downtime.

Peak Efficiency

The highest level of performance or productivity with the least waste of resources.

Normal Operating Conditions

The usual environmental and operating conditions under which a piece of equipment or a facility is expected to operate.

Reciprocal Method

An accounting technique used for allocating service department costs to operating departments by incorporating the mutual services provided among all service departments.