-The Above Table Shows Production Combinations on a Country?s Production

question 404

Multiple Choice

$$\begin{array} { | l | l | l | } \hline \text { Point } & \begin{array} { l } \text { Production of } \\X\end{array} & \begin{array} { l } \text { Production of } \\Y\end{array} \\\hline \text { A } & 0 & 40 \\\hline B & 3 & 36 \\\hline \text { C } & 6 & 28 \\\hline \text { D } & 9 & 16 \\\hline \text { E } & 12 & 0 \\\hline\end{array}$$
-The above table shows production combinations on a country?s production possibilities frontier. Which of the following is an example of a point that is unattainable?

• A) 0 units of good X and 40 units of good Y.
• B) 10 units of good X and 16 units of good Y.
• C) 3 units of good X and 35 units of good Y.
• D) 6 units of good X and 28 units of good Y.

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Definitions:

Cost of Goods Sold

The immediate expenses related to the creation of products sold by a business, which include costs for materials and labor.

Merchandising Firm

A business that purchases goods and resells them at a profit without changing their basic form.

Manufacturing Firm

A business engaged in the industrial production of goods from raw materials through the use of labor and machinery.

Conversion Costs

The combined costs of direct labor and manufacturing overheads that are incurred to convert raw materials into finished goods.