The Diagram Below Shows Robinson Crusoe's Annual Production Possibilities Boundary

question 19

Multiple Choice

The diagram below shows Robinson Crusoe's annual production possibilities boundary for the production of bananas and coconuts. FIGURE 32-3 Refer to Figure 32-3.What is Robinson Crusoe's opportunity cost of bananas in terms of coconuts?

• A)2
• B)1
• C)1/2
• D)100
• E)200

---

Definitions:

Cash Discounts

A reduction in invoice price offered by sellers to buyers as an incentive for early payment.

Credit Terms

Conditions under which credit is extended by a lender to a borrower, including payment due dates, interest rates, and repayment schedules.

Credit Period

The time frame granted by a creditor within which payment for a purchase must be made; typically used in commercial transactions.

Credit Risk

The risk of loss resulting from a borrower's inability to repay a loan or meet contractual obligations.