Any Production Point Outside the Production Possibilities Frontier Is

question 203

Multiple Choice

Any production point outside the production possibilities frontier is

• A) associated with unused resources.
• B) attainable only if prices rise.
• C) attainable only if prices fall.
• D) unattainable.

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Definitions:

Sales

The exchange of goods or services for money, quantifying the performance and profitability of a business.

Operating Assets

Assets that are used for the day-to-day operations of a business, contributing to its ability to generate revenue.

Return On Investment

A measure of the financial gain or loss on an investment relative to the amount of money invested, usually expressed as a percentage.

Contribution Margin Ratio

The ratio of contribution margin (sales minus variable costs) to sales revenue, indicating the percentage of each sales dollar available to cover fixed costs and profit.