-The Table Above Lists Six Points on the Production Possibilities

question 29

Multiple Choice

$$\begin{array} { | l | l | } \hline \begin{array} { l } \text { Cheese } \\\text { (tons) }\end{array} & \begin{array} { l } \text { DVDs } \\\text { (thousands } \\\text { ) }\end{array} \\\hline 0 & 60 \\\hline 2 & 56 \\\hline 4 & 48 \\\hline 6 & 36 \\\hline 8 & 20 \\\hline 10 & 0 \\\hline\end{array}$$
-The table above lists six points on the production possibilities frontier for cheese and DVDs. What is the opportunity cost of producing the 7th ton of cheese?

• A) 8 DVDs per ton of cheese
• B) 28 DVDs per ton of cheese
• C) 20 DVDs per ton of cheese
• D) 16 DVDs per ton of cheese

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Definitions:

Receivable

A receivable is an amount of money owed to a firm by its customers following the sale of goods or services on credit.

Accounts Receivable

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Industrial Firms

Companies engaged in the production of goods within an industrial sector, including manufacturing, construction, and mining activities.

Assets

Resources owned or controlled by a business, entity, or individual, expected to produce economic value or future benefits.