Agnes Can Produce Either 1 Unit of X or 1

question 21

Multiple Choice

Agnes can produce either 1 unit of X or 1 unit of Y in an hour, while Brenda can produce either 2 units of X or 4 units of Y in an hour. The opportunity cost of producing a unit of Y is

• A) 1 unit of X for Agnes and 2 units of X for Brenda.
• B) 1 hour for Agnes and 1/2 hour for Brenda.
• C) 1 hour for Agnes and 2 hours for Brenda.
• D) 1 unit of X for Agnes and 1/2 unit of X for Brenda.

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Definitions:

Collection Float

The time period between when a payment is made by a customer and when the funds become available to the recipient.

Cheques

Financial instruments that instruct a bank to pay a specific amount of money from a person's account to another individual or entity.

Processed

Refers to items or data that have been altered, refined, analyzed, or prepared through a series of actions for a specific use or purpose.

Disbursement Float

The time lag between when a check is issued and when the funds are actually withdrawn from the issuer’s account.