A Point Lying Inside the Production Possibilities Boundary Is One

question 99

Multiple Choice

A point lying inside the production possibilities boundary is one at which

• A)there is no scarcity.
• B)the opportunity cost of producing more output is negative.
• C)it is not possible to produce more output with existing resources.
• D)the economy has run out of resources.
• E)more output could be produced with existing resources.

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Definitions:

Delivery Cycle Time

The total time taken from receiving a customer order to the delivery of the product or service to the customer.

Fill Orders

The process of completing a customer's purchase request by preparing and dispatching the requested products.

External Failure Cost

Expenses incurred when a product fails to meet quality standards after being delivered to the customer, including returns, repairs, and lost sales.

Quality Cost Report

Internal report that details the costs associated with preventing, detecting, and correcting defective work, categorized into prevention, appraisal, and failure costs.