Use the Table Below to Answer the Following Questions

question 155

Multiple Choice

Use the table below to answer the following questions.
Table 2.1.2
Production Possibilities

-Refer to Table 2.1.2. In moving from combination B to combination C, the opportunity cost of producing one additional unit of guns is

• A)2 kilograms of butter.
• B)1/2 kilogram of butter.
• C)6 kilograms of butter.
• D)1/6 kilogram of butter.
• E)3 kilograms of butter.

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Definitions:

Future Cash Flows

Estimated future financial transactions that a company expects to receive or pay out.

Fair Value

An estimate of the price at which an asset or liability could be traded in a fair transaction between willing parties, other than in a liquidation.

Straight-Line Depreciation

A method for allocating the financial value of a tangible asset through its lifespan in even yearly payments.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset over its useful life.