-In the Production Possibilities Frontier Depicted in the Figure Above

question 405

Multiple Choice

-In the production possibilities frontier depicted in the figure above, what is the opportunity cost of increasing the production of bananas from two million pounds to three million pounds?

• A) 1 million hats
• B) 3 million hats
• C) 1/2 million hats
• D) 2 million hats

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Definitions:

Outstanding Cheques

Checks that have been written and recorded in the payor's ledger but have not yet been cashed or cleared by the bank.

NSF

An acronym for "Non-Sufficient Funds," indicating that an account does not have enough money to cover a presented check or withdrawal.

Cash Management

The process of collecting, managing, and investing a company's cash flows in a way that maximizes liquidity and profitability.

Operating Cycle

The duration of time it takes for a company to purchase inventory, sell it, and convert the sale into cash through customer payments.